Dynamic Discounting enables treasury teams to utilise excess cash to invest in their supply chain and improve profitability. With SME suppliers’ alternative cost of funds often being 6-7% or more, these programmes can achieve good adoption rates while giving the buyer returns significantly above current deposit rates without any additional risk.
Demica’s automated solution manages the marketing & onboarding of suppliers, enables suppliers to take early payment, creates the credit notes to book the discounts into the ERP system, and delivers
the payment files, if necessary, to trigger the early payment using the client’s ordinary payment processes.
Unlike any competitor, our rules engine can support our clients’ reporting cycles, prioritising funding intra-quarter to ensure working capital levels reported to investors remain as expected. A combined Supply Chain Finance / Dynamic Discounting programme enables suppliers to continue to be able to finance invoices near quarter end by drawing on a Demica's Investor Partners provided funding line.
Unlike others that focus solely on dynamic discounting, or banks that only off supply chain finance, a key competitive advantage for Demica is that we are able to structure a comprehensive payables programme for the entire supply chain using SCF for large, strategic suppliers and Dynamic Discounting for smaller suppliers.
Making supplier onboarding easy is critical to success. Demica has a unique online collaborative platform that allows the buyer, funder and supplier to work together. Online marketing and self-onboarding enables us to efficiently onboard hundreds of suppliers if required.
“Demica’s Dynamic Discounting and supplier onboarding solution enabled us to swiftly roll-out a market leading Dynamic Discounting programme. Our suppliers have access to user interfaces that enable them to select when to receive funds and at what discount”
"Finding a provider able to support both Dynamic Discounting and Supply Chain Financing within the same platform is extremely uncommon. Demica’s market leading platform enables us to directly offer selected suppliers bank funded early payments while also offering our smaller suppliers access to financing through DD”
Director - Working Capital Solutions