Discounting

1. Discounted cash flow (DCF).

In the context of DCF analysis, discounting is the process of calculating present values for expected future cash flows.

2. Trade finance.

In trade finance, discounting techniques allow suppliers to receive earlier payment, but for smaller amounts than the full face value of the related invoices or bills of exchange.

3.

More broadly, any deduction from the full or usual price of something.

For example in retail.

See also

• Bill discounting
• Discount house
• Discount rate
• Discounted cash flow
• Dynamic discounting
• Internal rate of return
• Invoice discounting
• Net present value

Other links

Masterclass: Discounted cash flow, Will Spinney, The Treasurer