Dynamic Discounting

Dynamic discounting is a solution that gives buyers more flexibility to choose how and when to pay their suppliers in exchange for a lower price or discount for the goods and services purchased. The “dynamic” component refers to the option to provide discounts based on supplier payment dates. In most cases, the earlier the payment is made, the greater the discount.

Dynamic discounting enables buying organisations and their suppliers to initiate early-pay discounts on an invoice-by-invoice basis. This Solution allows both parties to view invoices through a web-based platform and select approved invoices for early payment.

The main benefit of dynamic discounting is that the buyer can use their balance sheet or excess cash to generate additional purchasing discounts-the seller benefits by reducing working capital and getting paid earlier.

iColumbus.ai Platform’s supply chain finance offering supports Dynamic Discounting, giving buyers more flexibility to choose how and when to pay their suppliers in exchange for a lower price or discount for the goods and services purchased. It enables buying organisations and suppliers to initiate early-pay discounts on an invoice-by-invoice basis.