Dynamic discounting is a true win-win solution that benefits both trading partners. Not only does this solution strengthen each party’s financial health, it also improves relationships throughout the supply chain.
Buying organizations can put their excess cash to work to gain early payment discounts that decrease COGS, improve margins, and earn a high yield return on liquidity. Suppliers benefit from the flexibility of discounting some or all of their receivables.
For suppliers, dynamic discounting provides the flexibility to be paid earlier than the invoice maturity, often at more attractive terms than alternative methods such as asset-based lending or factoring.