The growth in the use of dynamic discounting is highlighted in the most recent AP & Working Capital Report published by PayStream Advisors, which found that the proportion of companies using it to capture rebates and discounts increased by 50% last year compared with 2016.
Dynamic discounting gives large, cash-rich buyers flexibility over how and when they pay suppliers, by allowing them to use their excess cash to obtain discounts to pay the seller, usually a smaller company, earlier.
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