Dynamic Discounting

OneSCM’s Dynamic Discounting feature provides automated early payment discounts based on supplier cash policies and commercial terms that have been negotiated between suppliers and buyers. Dynamic discounting integrates with accounts payable (AP) systems to pay invoices based on a sliding scale tied to the number of days remaining until the full amount of an invoice is due as well as a buyer's credit rating.
 

Benefits:

  • Automation of payment timing based on capital needs
  • Savings from early payments
  • Increased negotiating leverage

OneSCM automates this mutually beneficial arrangement between suppliers and buyers, determining discounts based on supplier criteria. In some cases, third-party creditors can also be used on behalf of a buyer to make early payments on invoices, benefiting both suppliers and buyers by increasing working capital.