What is dynamic discounting?

Dynamic discounting is a powerful tool for finance departments.  Buyers offer payment terms on a sliding scale: the earlier the supplier selects to be paid, the bigger the discount.

Dynamic discounting provides benefits for both buyers and their suppliers.  The assurance of a quick payment as well as predictable payments is a big win for suppliers.  Buyers benefit from more discounts, which translate into higher profit margins and bottom-line growth, and fewer supplier inquiries about payment status, which greatly improves staff productivity.