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What is dynamic discounting?
Dynamic Discounting is also known as ‘discounting for the 21st century’.
Here is how it works
- Upfront you agree with your supplier that they can ask for an early payment on any outstanding invoice at any time in exchange for a discount
- When your supplier does want to get paid early, they login to Yordex and request an early payment
- We automatically calculate the required discount based on your desired APR. For example, if you want a 12% APR and the supplier asks early payment on an invoice that is due in 60 days, we propose 2%
- You will get a request to pay early. If you pay, we automatically record the discount
- If you cannot or do not wish to pay early, a Yordex finance partner can pay early on your behalf and you will still pocket part of the discount
The image below illustrates the level of the discount and how it compares with traditional early payment discounts.
Benefits for you
- Negotiate better payment terms for all your orders. Because sellers can always request an early payment, dynamic discounting allows you to lengthen your standard payment terms
- Earn additional discounts. Even when a third party finance provider pays, you can still get a portion of the discount
- Improve the relationship with your suppliers
Benefits for your suppliers
- Get paid early when they need additional cash
- No need to provide an early-payment discount on all your orders. Only provide a discount when they need the money