Difference between revisions of "Dynamic Discounting"
From Open Risk Manual
Wiki admin (talk | contribs) |
Wiki admin (talk | contribs) |
||
| Line 1: | Line 1: | ||
== Definition == | == Definition == | ||
| − | '''Dynamic Discounting'''. It describes a number of methods through which early payment discounts on invoices awaiting payment are offered to vendors and funded by the buyer. | + | '''Dynamic Discounting'''. It describes a number of supply chain methods through which early payment discounts on invoices awaiting payment are offered to vendors and funded by the buyer. The service is dynamic in the sense that the earlier the payment, the higher the discount. |
| − | + | It is a variant of payables finance whereby the buyer may utilise its own funds to pay an invoice or account payable prior to the original due date. | |
[[Category:Supply Chain Finance]] | [[Category:Supply Chain Finance]] | ||
[[Category:Business Models]] | [[Category:Business Models]] | ||
Revision as of 13:21, 22 December 2021
Definition
Dynamic Discounting. It describes a number of supply chain methods through which early payment discounts on invoices awaiting payment are offered to vendors and funded by the buyer. The service is dynamic in the sense that the earlier the payment, the higher the discount.
It is a variant of payables finance whereby the buyer may utilise its own funds to pay an invoice or account payable prior to the original due date.
