Dynamic Discounting

What is Dynamic Discounting?

Dynamic Discounting is a supplier financing technique that allows organizations to pay suppliers faster in exchange for a lower price, or discount, on the goods and services purchased. The word “dynamic” refers to the variable level of discount granted based on how early the supplier payment is. In most cases the earlier the payment occurs, the greater discount shall be.


Fixed discounts only save the buyer money when a supplier invoice is traded on, or before a static date
1% / 10 NET 50
1% Discount 20%


10 Days





Dynamic discounting offers larger, more flexible discounts over a longer period

Dynamic Discounting is advantageous because suppliers can trade their invoices for cash at any point along the way, and the discount percentage adjusts accordingly. Move your cursor over the points on the curved graph above and see for yourself.

Benefits of Dynamic Discounting

With Dynamic Discounting, suppliers have the freedom to initiate early payment in exchange for discounts on an invoice-by-invoice basis. The access to early payment helps suppliers improve cash flow so they can meet payroll and grow accordingly.

The corporate buyer benefits by helping improve their immediate profit and loss statements and reduce annual spend figures. There is no cost to the corporate buyer in setting up a Dynamic Discounting program.

The direct, straightforward nature of Dynamic Discounting also adds to its appeal. There is no third party lender to navigate. The supplier and buyer work with each other directly, using Supplier Success’ web software to view all approved invoices, request early payment on them, and approve the small discounts that will be subtracted from the total invoice amount. This makes setup and implementation very quick and easy.

  • Reduce annual spend
  • Improve P/L statements
  • Improve margins
  • Increases supplier cash flow
  • Zero cost to implement

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