Dynamic Discount Management: Moving Toward Mainstream
PayStream Advisors Explores the Benefits for Buyers and Sellers
Capturing early payment discounts is a growing priority for most companies. This and other findings of a recent PayStream Advisors survey tell a compelling story: Dynamic discounting, trade financing, and buyer-initiated payments have elevated accounts payable automation to a strategic priority for treasurers and CFOs.
The use of dynamic discounting, incorporating a sliding scale or negotiated terms, allows companies to invest their cash safely at rates that can significantly exceed returns from many other traditional investments, including the S&P 500, capital purchases, and even gold. The bottom line? Dynamic discounting provides early settlement opportunities that serve the cash management needs of buyers and suppliers. For suppliers that equates to improved liquidity. And buyers have access to a low-risk, high yield, short-term investment opportunity.
Wondering how you, too, can capture the benefits of dynamic discounting? That answer and many more are available here.