Supplier B's terms of 4%/5, Net 30 are more advantageous. This means a 4% discount is available if the invoice is paid within 5 days, whereas Supplier A offers a 2% discount for payment within 15 days. Paying early (5 days) to get a 4% discount is more beneficial in terms of cost savings compared to a 2% discount for paying within 15 days. The greater discount percentage within a shorter period represents better cash flow management and cost savings.
References:
* Financial Terms in Procurement
* Cash Flow Management Techniques in Supply Chain