Dynamic Discounting - an extra argument for e-invoicing?

April 19, 2010  |  Electronic Invoicing, Publications

DDDiagram 230x200For many suppliers credit is either difficult to secure or expensive. By working closely with customers and leveraging the power and flexibility of a P2P system, they can create a genuine synergy that reduces prices, reduces the cost of borrowing and ultimately - reduces the cost of doing business. This is called dynamic discounting and e-invoicing fits the bill.

How does Dynamic Discounting Work?

The supplier offers a discount for early payment. The earlier the payment, the greater the discount. Historically, it’s not always been easy to achieve arrangements that work for both supplier and buyer and because of practical problems, it hasn’t always been easy for buyers to actually pay early.

Read the entire article at Purchasing Insight here

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