What is the difference between trade discount and cash discount?

A trade discount is for certain types of buyers. For example, a wholesaler gets a better price than a regular store. This discount happens before the sale is even recorded. It just lowers the list price.

A cash discount is different. It’s an offer to pay your bill early. Like, you can take 2% off if you pay in 10 days instead of 30. This is to encourage fast payment after the sale has already been made.