Dynamic Discounting

Definition: payment terms that can be established between a your company and your vendor to accelerate payment in return for a discount. Dynamic Discounting includes the ability to agree upon terms that vary the discount according to the date of early payment. The earlier the payment, the greater the discount.

I know of these three companies that offer this service: Taulia, TradeShift, Commerce Bank, and there are probably more.

* Automating Discount Capture on 100% of invoices
* When invoice is approved the supplier is notified and can opt to be paid early
* Supplier gets fast inexpensive access to cash
* And your company gets outstanding returns
* Improves profitability
* and strengthens supplier relationships along the way.

Here are a few videos i found:

I am endorsing neither of these companies, but i do agree that the idea of implementing dynamic discounting at your company can make sense.

Robert Ruhno | ap-professionals.com

#AccountsPayable #Accounts Payable #Accounting