Dynamic Discounting for Accounts Payable

Many suppliers are willing to agree to discounts in exchange for earlier payment of their invoices. But for scores of companies, the financial supply chain is just not equipped to take advantage of the opportunity—missing out on early pay discounts because it is too difficult to change payment terms, or the accounts payable tools simply aren’t in place to offer or accept a change in payment terms. Without automation and real-time process visibility, it is extremely difficult for businesses with high invoice volumes to take advantage of early payment discounts. The process can be complex, requiring alignment between purchasing, liquidity management, accounts payable and suppliers. And often accounts payable processes are highly structured and lack the flexibility to process invoices with non-standard “dynamic” payment terms. The process is called Dynamic Discounting and allows buyers and sellers of commercial goods and services to change the payment terms for an individual invoice or group of invoices to accelerate payment based on a sliding discount scale. The process is specifically designed to allow buyers and sellers to manage early payment discount offers easily and seamlessly. Incorporating Dynamic Discounting into our Dolphin AP solution offers our customers a host of additional benefits. It allows buyers to convert a large number of their suppliers to slide scale payment terms and to enable their suppliers to opt for an earlier payment of approved non-discount invoices against a discount. Dynamic discounting functionality enhances supplier relationships, improves the AP department productivity and facilitates effective cash flow management that can benefit the bottom line. A win/win for both buyer and seller. It would be interesting to know how many companies are actively using dyanamic discounting, or are looking into it, and what their experience has been. www.dolphin-corp.com/ap-dynamic-discounting/

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Dynamic Discounting for Accounts Payable

Many suppliers are willing to agree to discounts in exchange for earlier payment of their invoices. But for scores of companies, the financial supply chain is just not equipped to take advantage of the opportunity—missing out on early pay discounts because it is too difficult to change payment terms, or the accounts payable tools simply aren’t in place to offer or accept a change in payment terms.

Without automation and real-time process visibility, it is extremely difficult for businesses with high invoice volumes to take advantage of early payment discounts. The process can be complex, requiring alignment between purchasing, liquidity management, accounts payable and suppliers. And often accounts payable processes are highly structured and lack the flexibility to process invoices with non-standard “dynamic” payment terms.

The process is called Dynamic Discounting and allows buyers and sellers of commercial goods and services to change the payment terms for an individual invoice or group of invoices to accelerate payment based on a sliding discount scale. The process is specifically designed to allow buyers and sellers to manage early payment discount offers easily and seamlessly.

Incorporating Dynamic Discounting into our Dolphin AP solution offers our customers a host of additional benefits. It allows buyers to convert a large number of their suppliers to slide scale payment terms and to enable their suppliers to opt for an earlier payment of approved non-discount invoices against a discount. Dynamic discounting functionality enhances supplier relationships, improves the AP department productivity and facilitates effective cash flow management that can benefit the bottom line. A win/win for both buyer and seller.

It would be interesting to know how many companies are actively using dyanamic discounting, or are looking into it, and what their experience has been. www.dolphin-corp.com/ap-dynamic-discounting/