Offer a Discount as an Incentive to Get Timely Payment – 101 Street Smart Cash Flow Accelerators #56

Back with another of my 101 cashflow generators. I hope you’ll love these. This one is about the discounted rent. Now years ago I invented this idea and the thought was, Hey, if we set the rent at a certain amount and then we Mark it up, say $100 per month, then when they pay on time they earn a discount down to the amount that we would actually like to collect. And if they don’t pay on time, then what happens is they pay the higher rent. They didn’t earn their discount, so it’s an earned discount, and the way they earn their discounts is by agreeing to pay on time. And so when they pay on time and they pay the lower amount of rent, which is actually the amount of rent that you would like to get for that property, and when they don’t realize that you’re going to have to spend time, energy, you may have to even spend resources to collect that.

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