Perry Ltd purchased $30,000 worth of raw material from one of its suppliers. The supplier offers credit terms of 2/10 net 30. The company does not have sufficient cash on hand to take advantage of the discount and is considering borrowing the funds to do so.

The company has approached the following two banks. BMO is willing to lend Perry Ltd. the funds for 30 days at a cost of $400. Scotia Bank is offering a discounted loan for 30 days at a cost of $380.

Required: Advise Perry Ltd on what action they should take.