Dynamic Discounting - Early Advantage Limited

What is Dynamic Discounting?

Dynamic discounting is a supply chain finance solution that provides the buyer with full flexibility for using their own funds to make early discounted payments to their suppliers through a digital platform. It differs from a standard payables finance programme in the sense that the buyer negotiates directly with their suppliers a discount price. Buyers with an excess of cash can release significant value for themselves as well as their suppliers. It allows them to generate higher yields on the excess cash they hold by paying suppliers early, upon request at any point before invoice maturity, and at a discounted price while suppliers improve their liquidity situation.

How it works ?

  • Supplier issues invoices to its buyer against goods or services supplied
  • Buyer approves invoices received and sends a confirmation to Early Advantage with invoice details (All invoices beyond this point are approved, vetted and secure)
  • Suppliers log on to the platform and select the invoice(s) for early payment and set a discount rate which is either accepted or rejected by buyer
  • Following acceptance, funding instructions are sent to the buyer’s ERP based on the updated price and due date
  • Buyer applies the discount and makes early payment on new due date

What are the benefits?

Buyers benefits
  • Reduce Annual Spend
  • Improve P/L statements
  • Improve Margins through reduction in COGS
  • Increases Supplier Cash Flow
  • Zero Cost to implement
  • Easy implementation and effortless on-boarding
  • Automation maximizes time and cost savings
  • Superior returns of up-to 40% APR*
  • Zero Risk
  • Complete Control of your finances
Suppliers benefits
  • Deal directly with Buyer through a web portal to offer Early payment discount
  • Instantly turn your receivables into cash
  • Grow business with adequate working capital
  • Receive payment early for a discount (up to 99% of invoice value), directly from your customer
  • Avoid high bank interest rates, processing charges and collateral
  • Request funds only when needed, complete freedom
  • Not a loan product
  • Increase certainty of cash flow
  • User-friendly interface and complete on-boarding support