What would be some disadvantages of not taking a suppliers discounts?

Question

If I were to open a business and not take these discounts what would happen?

Answer 1

Ouch!

You would increase your cost of doing business.  If you look at a typical supplier discount, for example, 1% 10 days it is equivalent to 36% per year.  

I admit that it isn't very likely that you will buy from one supplier 36 times over the course of a year, but I am fairly sure that you will make at least 36 buys a year from vendors offering 1% 10.

The second disadvantage is that if you fail to pay in a timely manner so that you can take the discounts your vendors will become suspicious of your ability to pay and reduce your credit limits and/or turn in negative reports to the credit rating services.

If you buy on time, pay on time.

Jerry-the-bookkeeper