It all depends on the relationship of the entrepreneur with the supplier (the length of the business relation) and on the monthly volume of orders received by the supplier from the company. By reducing the number of suppliers, the contractor increases the volume ordered from each one and is thus in a better position to negotiate an extension of the payment period. A trade discount is a transaction in w hich a customer pays the supplier’s invoice in cash or in a short period of time (defined by the supplier, usually 10 days), instead of waiting for the deadline, in exchange for a small percentage discount (also defined by the supplier). This will allow you to financially strengthen your business, and w ill avoid long negotiations with your bank.