Dynamic Discounting

Dynamic Discounting

What is Dynamic Discounting?

Dynamic Discounting is a supply chain finance solution that allows buyers to utilise their excess cash to settle their invoices before the original invoice maturity date, at a discount. 

Our multi-funder platform provides buyers with the flexibility to use excess cash in line with their commercial trading cycle and offers Dynamic Discounting as an Early Settlement programme for corporates. 

How does Dynamic Discounting work?

Dynamic Discounting

How does Early Settlement work in Dynamic Discounting?

Early Settlement is a form of Dynamic Discounting that allows the funder to remain central in a Dynamic Discounting solution and use their balance sheet. The solution enables a Buyer to improve its P&L by early settling invoices at a discount agreed between the buyer and the funder. This structure works as a complement to Payables Finance – the funder remains at the centre of the solution, offering the buyer flexibility to alternate between buyer or funder funding.

Demica provides a best-in-class global platform, implementation and support, to ensure these programmes run seamlessly for all parties.

Our Platform makes Dynamic Discounting simple

Buyers: The platform allows all invoices sold to the funder to be eligible for early settlement by the Buyer and offers enhanced reporting to view the details related to each early settlement request.

Suppliers: Suppliers will maintain the same platform experience as under a Payables Finance arrangement.

Funders: The Demica Platform enables funders to configure the Early Settlement programme for each applicable buyer and approve invoices for early settlement.

Dynamic Discounting

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