Intelligent smart bid algorithm that maximizes the rate discovery from suppliers, thus increasing discounts for the enterprise.
Use corporate credit cards to make early payments, and the cash discounts can be used to cover the transaction cost. The excess discount is passed on to the enterprise.
Disclaimer:The figures generated by this calculator are intended
as a guide only. This shall not, and is not intended to,
constitute any funding commitment. Rates will be given by
financiers according to their analysis of yours and your buyer's
risk profile.
Discover why businesses are adding KredX Dynamic Discounting to their solutions stack
Dynamic discounting is a payment practice where a supplier offers a discount to a buyer for early payment of an invoice. The discount rate decreases as the payment due date approaches, incentivizing the buyer to pay earlier and providing cash flow benefits to the supplier.
Dynamic discounting provides suppliers with the option to receive early payment for their invoices, improving their cash flow and working capital. This can help suppliers to reduce their financing costs and invest in growth opportunities.
Dynamic discounting benefits buyers by providing them with the opportunity to receive discounts for paying their invoices early. This can help buyers to improve their bottom line and strengthen their relationships with suppliers.
The risks associated with dynamic discounting include errors in processing invoices, and disputes between buyers and suppliers. In addition, if the discount rate is too high, it may be detrimental to the supplier’s profitability.
Companies can implement dynamic discounting by partnering with a third-party provider that offers a dynamic discounting solution, or by building their own in-house solution. The implementation process typically involves integrating the dynamic discounting solution with the company’s existing invoicing and payment systems.
Dynamic discounting is best suited for companies that have a large volume of invoices from a big vendor base and a strong relationship with their suppliers. It is particularly beneficial for companies that have a high level of working capital tied up in accounts payable.