Financial supply chain galore! Tradeshift now offers dynamic discounting [+video]

Following the recent release of a $3 billion supply chain financing offer through CapitalAid, Dynamic Discounting is the logical next addon to Tradeshift’s already impressive toolkit.

Suppliers registered with Tradeshift are prompted to sign up for Dynamic Discounting when signing up with a new trading partner. And from the buyer’s side, it’s just as simple. They define their discount offers for the suppliers who have expressed interest in joining the Dynamic discounting program. They then send the offer to suppliers with just a few clicks.

The story behind dynamic discounting

Before dynamic discounting companies are in need of (access to) cash. So they need they need their invoices paid quickly to stay in production and to grow. However big customers prefer extended payment terms and like to keep their cash on hand for as long as possible.

Dynamic Discounting provides a fix for suppliers and buyers. When buyers pay early, suppliers provide discounts on invoices. The earlier they pay, the greater the discounts. Smaller suppliers get the cash they need quickly, and the big buyers save money and enjoy the many benefits of a cash solvent supply chain. Both parties win. As long as the terms are fair, that is.

The vision of Tradeshift

Mihir Nanavati Tradeshift SVP of Product, explains on Tradeshift’s company blog.

• “Many feel that finance, and business in general for that matter, is a zero sum game. We’ve never seen it like that at Tradeshift. Rather, we recognize that when you deliver real value, you receive it in return,“
• “Early payment solutions, specifically Dynamic Discounting, have the potential to strengthen a supplier and help them grow while reducing costs for buyers. This is not a winner-takes-all game. Every solution we develop shares this goal of delivering value to both ends of the transaction — Tradeshift Dynamic Discounting does just that,“
• “Tradeshift Enterprise customers who are already experiencing benefits of electronic invoicing will find that their discount capture rate exceeds expectations, thanks to Tradeshift’s collaborative workflow with mobile enablement of invoice coding, review and approval.”