Discount and duration for payment of installments

Hello,

the carpentry company from which we would like to have our house (turnkey with own contributions) built is offering a 3% discount on their own if paid within 8 days. I think that's great so far, but is that even feasible with financing through the bank? How long does the bank take to release the installments? It probably takes several days from when the invoice is processed, the money is transferred to our account, and we transfer the money to the contractor's account, right? What are your experiences with that?

The second condition attached is that we pay 30% upfront. I find that understandable because the house is prefabricated at the carpentry, windows are ordered, etc. But apparently the bank only pays when the corresponding progress can be seen on the construction site? (Aside from the fact that it would also make sense in our interest to pay only after actual progress)

Should we rather not count on the discount, or was that not a problem for you?

Best regards
Stefan

That sounds like ZH from NEA. We handled the discount and advance payment that way, with our bank the payment was always processed on the same business day. Otherwise, the value date can also be postponed.

The construction progress report should also be able to be faxed or sent by email in advance, just ask the bank. Our bank did not take the detour via our account but transferred directly to the [Häuslebauer]'s account. Then with the construction progress report, instruct the transfer with the deduction of 3%. Have the remaining amount paid out at the end and enjoy your vacation.

Best regards, Yvonne

That's why it's always good to have a few euros of equity; otherwise, the bank always pays the craftsmen and never you. Otherwise, the money could be misused. I would ask about the 30% deduction.

That sounds like ZH from NEA. We handled the cash discount and prepayment that way; with our bank, the payment was still made on the same business day. Otherwise, the value date can also be adjusted backward.

PN

I only find it reasonable to offer a discount if it is negotiated afterwards, otherwise the X% have already been factored in "on top" from the start.