Dynamic Discounting

Our dynamic discounting solution leverages a collaborative technology platform to allow buyers to create a supply chain finance program, which is self-funded. This allows the buyer to generate maximum returns from their available liquidity through a collaborative rate matching negotiation process for each individual supplier. In addition, it significantly reduces the administration time and effort for the buyer to manage a global discounting program by utilizing a third party platform.

Dynamic discounting programs give suppliers access to working capital when rates from their own capital providers exceed that which the buyer may offer. Also, early payment under a dynamic discounting program is not considered debt for a supplier.

Buyers looking to capitalize on a dynamic discounting program can run this program solely on its on, or in conjunction with any of our other working capital solutions such as supply chain finance. This allows the buyer to not only gain a working capital improvement but simultaneously earn a gross margin improvement as well.

A significant difference exists between payment terms with stationary discounts and a dynamic discounting program which is flexible in the discount and payment term offered to suppliers.


  • Traditional NET 30/60 etc. payment term offers no incentives for buyer to pay early
  • Even when early payment discount like above is offered, buyers can only enjoy the discount within a certain period of time
  • If buyers take a long time to approve invoices, the discount is lost

  • A sliding scale payment term which offers the greatest flexibility to suppliers and buyers at the same time
  • In the above example, by paying suppliers immediately buyers can enjoy a 3% discount
  • Financially it is equivalent to depositing a sum of money ahead at T=0 at 3% per 30 days to meet the obligation at T=30, APR = 3% x 360 / 30 = 36%

Benefits of Dynamic Discounting

Dynamic Discounting has many benefits to all parties involved.

For Buyers:

  • Improves profitability by providing flexible discount rates to suppliers
  • Often a more profitable use for excess cash than other operational investment alternatives
  • Allows executive team to effectively meet corporate metrics and objectives
  • Not considered debt but rather early payment (no financing involved)
  • Mitigates supply chain risk by reducing potential for supplier default

For Suppliers:

  • Complete control over when the supplier gets paid via an online request process
  • Considered early payment rather than financing and no debt is incurred
  • No cumbersome KYC on-boarding processes