DEMYSTIFYING CONCESSIONS IN FINANCIAL TRANSACTIONS

Concessions are discounts or offers given by a seller to a buyer in a financial transaction.

They are used to attract customers and increase sales.

Concessions can be in the form of cash discounts, trade discounts, quantity discounts, or promotional discounts.

Cash discounts are given for early payment of invoices.

Trade discounts are given to customers who buy in bulk or have a long-standing relationship with the seller.

Quantity discounts are given to customers who buy a large quantity of a product.

Promotional discounts are given to customers during special events or holidays.