Tradeshift today announced their latest early payments offering – Dynamic Discounting. Following the recent release of a $3 billion supply chain financing offer through CapitalAid, Dynamic Discounting is yet another financial solution fully integrated into the Tradeshift platform providing easy access to cash for suppliers.
“Many feel that finance, and business in general for that matter, is a zero sum game. We’ve never seen that as the case at Tradeshift. Rather, we recognize that when you deliver real value, you receive it in return,” explained Tradeshift SVP of Product, Mihir Nanavati on Tradeshift’s company blog. “Early payment solutions, specifically Dynamic Discounting, have the potential to strengthen a supplier and help them grow while reducing costs for buyers. This is not a winner-takes-all game. Every solution we develop shares this goal of delivering value to both ends of the transaction – Tradeshift Dynamic Discounting does just that,” he continued.
The old story goes something like this – smaller companies need access to cash and their invoices paid quickly so they can stay in production and grow. Their big customers prefer extended payment terms and like to keep their cash on hand for as long as possible. Dynamic Discounting provides a fix for both participants. When buyers pay early, suppliers provide discounts on invoices. The earlier they pay, the greater the discounts. Smaller companies get the cash they need quickly, and the big guys save money and enjoy the many benefits of a cash solvent supply chain. As long as the terms are fair, both parties win.
Suppliers using a registration application running on Tradeshift to sign up with a new trading partner are prompted to sign up for Dynamic Discounting. And from the buyer side, it’s just as simple. Define your discount offer for the suppliers who have expressed interest in joining the program. Then send the offer to suppliers with just a few clicks.
Tradeshift Enterprise customers who are already experiencing benefits of electronic invoicing will find that their discount capture rate exceeds expectations, thanks to Tradeshift’s collaborative workflow with mobile enablement of invoice coding, review and approval.
Download a copy of PayStream’s 2013 Dynamic Discount Management: Moving Toward Mainstream report to learn more about how dynamic discounting can benefit your company. To learn more about Tradeshift, download the recently released Invoice and Workflow Automation Benchmark report. The report features a detailed Tradeshift profile.
