logo

Products

Dynamic Discounting

Dynamic Discounting, also known as Buyer Funding, is a form of supply chain finance where suppliers settle their invoices before maturity at a discount.

img

How does it work?

Dynamic Discounting allows the buyer to utilise their excess cash to make early payments to suppliers looking to settle their invoices before the invoice maturity date. The buyer can achieve accounting benefits, as the programme is purely commercial.

Benefits

Generate higher yields

Improve P&L

Strengthen relationship with suppliers

Accelerate collection of receivables

Flexibility to switch between self and bank funding

Better relationship with buyer compared to a marketplace

Success factors

Demica's multi-funder platform provides buyers with flexibility to use excess cash through their commercial trading cycles. It allows for a combination of funding sources by using dynamic discounting with other forms of supply chain finance without impacting their supply chain.

Buyer's excess cash

Form of supply chain finance suitable for buyers with excess cash

Gross margin

Improves the buyer's gross margin by reducing the cost of goods sold

Treating suppliers fairly

Obtain profitability objectives, whilst providing suppliers with a stable level of funding at predictable costs, which can be substituted by bank funding

Thought leadership