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The most common types of discounts and allowances are listed below.

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These discounts are intended to speed payment and thereby provide liquidity to the firm. Some retailers (particularly small retailers with low margins) offer discounts to customers paying with cash, to avoid paying fees on credit card transactions.

Similar to the Trade discount, this is used when the seller wishes to improve cash flow or liquidity, but finds that the buyer typically is unable to meet the desired discount deadline.