Dynamic Discounting

Demica’s Dynamic Discounting solution enables large corporates with excess cash to reduce cost of goods sold and improve profitability by allowing suppliers to elect to take early payment at a discount. With average annual discount rates achieved in the market of 6-7%, Dynamic Discounting offers Treasurers a high return on cash without any additional risk. Demica’s unique supplier onboarding tool allows clients to engage large numbers of smaller suppliers who require funding while our legal structure enables suppliers to move into a bank funded SCF programme if cash has to be redeployed.

Want to know more?

If you would like to speak to us about our solutions, please contact:
Mansour Davarian

Mansour Davarian

Director - Working Capital Solutions

Languages EN

+44 (0) 20 7450 2505 Monday to Friday, 08:00 to 19:00 Contact Mansour

HOW DOES IT WORK?

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. 

HOW DOES DEMICA DELIVER THIS?

Demica can undertake several different roles in a Dynamic Discounting programme

ARRANGER

  • If third party capital is required to supplement the buyer’s own funds, Demica is able to source this from one of over 400 global banks, institutional investors, and alternative finance providers
  • With over $3.2bn of SCF transactions live, we have a unique understanding of investor appetite 

Advisor

  • Full supplier analysis, working with the buyer to tier suppliers through a combination of a cost of capital analysis and buyer relationship to establish the pricing to offer each supplier

servicer

  • Best in class supplier portal
  • Full white-labelling capabilities for corporates
  • Market leading Supplier Onboarding tools that are integrated seamlessly into the platform 
  • Flexible ERP integrations to automate programme management for clients

THE DEMICA ADVANTAGE

For Corporates

  • Best in class supplier portal
  • Yield maximisation for buyer
  • Ability to optimise Supply Chain Finance and Dynamic Discounting programmes 
  • Global, multi-lingual supplier onboarding team
  • Sophisticated analytical tools to manage supplier onboarding and maximise programme efficiency

For Suppliers

  • Access to funding at considerably cheaper rates than bank debt
  • Intuitive, graphical user interfaces for suppliers
  • Local currency payments enabling the supplier to access competitive FX rates

CLIENT TESTIMONIALS

“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”

Treasurer
-- Global Retailer

"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”

TREASURER
-- Global Corporate

Want to know more?

If you would like to speak to us about our solutions, please contact:
Mansour Davarian

Mansour Davarian

Director - Working Capital Solutions

Languages EN

Mansour brings over 10 years of origination and structuring experience in credit, lending and structured finance, executing and managing transactions for global large corporates across a number of jurisdictions.
+44 (0) 20 7450 2505 Monday to Friday, 08:00 to 19:00 Contact Mansour

CASE STUDIES

Illustrating the depth of our client relationships, we have highlighted a few programmes powered by Demica

VIEW ALL CASE STUDIES