A discount for prompt payment. Where goods are commonly sold on credit, it is often possible to obtain a reduction in price for prompt payment, in notes and coin, by direct debit, by cheque backed by a bank guarantee card, or by electronic transfer. Sellers are willing to offer cash discounts because immediate payment saves them both delay in receiving their money, and possible administrative costs or loss through default involved in credit sales or deferred payment.

• local government
• local maximum
• local minimum
• location
• lock-out
• locomotive principle
• logarithm
• logarithmic scale
• logistic curve
• log-linear function
• log-normal distribution
• log-rolling
• Lomé Convention
• London Inter Bank Offered Rate
• London International Financial Futures and Options Exchange
• long-dated security
• long position
• long rate
• long run
• long-run average cost
• long-run marginal cost
• long-run Phillips curve
• long-term interest rate
• long-term unemployment
• Lorenz curve