Features
- Discount amount is calculated dynamically based on the number of days remaining until the due date
- Discounts do not need to be negotiated in advance, rather the buyer can set a liquidity limit and interest rates and allow the supplier to dynamically take discounts as working capital needs dictate
- Trading parties can tap into a risk-free, alternative source of working capital with the use of third party creditors whom pay early on behalf of the buyer
- With companies such as Ariba, dynamic discounting is available on 100 percent of invoice spend, regardless of submission type
Read more about this topic: Dynamic Discounting
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