If you pay your phonebill (or any other bill) before it is due, can the phone company make more money from your payment or will they make money regardless of when you pay the bill?
My husband used to wait till the due date to pay bills saying it gives your creditor more money too soon. Does it really make any difference?
2006-11-05 10:59:01 · 2 answers · asked by misprint 2 in Business & Finance ➔ Other - Business & Finance
There are two ways they can make money from your early payment:
1. Larger companies that invest payments from their accounts receivable can make more money off of interest if you pay earlier than the due date.
2. It also improves their cash flow to pay their bills faster. If their creditors offer discounts for early payment then that is another way they can make money as a result of your early payment.
It may not seem like a big difference, but if alot of people do it then it can add up.
2006-11-05 11:13:46 · answer #1 · answered by kathi 2 · 1⤊ 0⤋
It makes no difference to you, but the sooner you pay them their money, the sooner they can get it into the bank and earn interest on it.
2006-11-05 11:06:22 · answer #2 · answered by Kacky 7 · 1⤊ 0⤋