APR vs. Discount | C2FO Help Center
APR vs. Discount
Understanding the Differences
APR (Annual Percentage Rate): An annualized rate applied to each invoice based on how many days early you are paid ( Days Paid Early / DPE).
How it works: Invoices paid only a few days early cost less than invoices paid many days early at the same APR. This is best for recurring offers where invoice timing varies.
In the platform: Described as "Best value for recurring offers; calculates individual rates per invoice based on how early you are getting paid."
Discount: A fixed, flat percentage taken off the invoice's face value, regardless of when it is paid.
How it works: A 2% discount on a $10,000 invoice always costs $200. This is best for one-time offers when you want a simple, uniform cost.
In the platform: Described as "A flat rate applied to each invoice in your offer."
Comparison Matrix
| Feature | APR | Discount |
| Based on | Days paid early (DPE) per invoice | Invoice face value |
| Cost per invoice | Varies by due date | Same percentage of amount |
| Typical use | Recurring / ongoing offers | One-time or uniform costing |
| Estimated amount | Reflects blended DPE across invoices | Straight percentage of total |
Note: The review screen shows estimated amounts using your selected rate type. You can compare both on the review step before submitting.
Managing Rate Types in Build Offer
Switching Rate Types
On the rate step, use the Rate Type dropdown to switch between APR and Discount. Changing the rate type will:
- Update the suggested Trending Rate and Express Accept values for that type.
- Change which pricing strategies are available.
Note: Your customer's market must support the rate type you choose. If an option is unsupported, it will not appear in the dropdown.
Express Accept
Suggested rates are tied to your selected rate type and frequency. For one-time offers using Discount, Express Accept uses a rate path optimized for fast acceptance at that specific discount level.
Fixed Rate and Variable Rate Divisions
These divisions use rates set by the market—not your APR or Discount entry. The rate type selection applies only to Name Your Rate divisions.
Quick Tips
- Choose APR when you accelerate invoices with a wide range of due dates and want the cost to scale dynamically with timing.
- Choose Discount when your team models internal early-pay costs in simple "percent off invoice" terms.