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Dynamically discount vendor invoices to maximise your returns
Improve EBITDA by up to 5% through treasury funded early payments or use off balance sheet financing to extend payable days at 0% interest rate.
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Safe and secure. Compliant with RBI guidelines & IndAS
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Talk to Sales
Safe and secure. Compliant with RBI guidelines & IndAS
Trusted by more than 3000 companies
The Problem Today
Vanilla vendor finance programs don’t maximise ROI
Flat rate programs treat all vendors the same, irrespective of their risk profile or willingness to pay. This leaves money on the table - that could boost your EBITDA.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
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The Problem Today
AP teams spend 100s of hours booking invoices
This is not only a waste of time and productivity, but many a times the invoice booking process has compliance loopholes, uses outdated technology and there is no central storage system for audit readiness and future reference.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
Flat rate programs
When companies have a program, they offer a standard flat rate to all vendors, instead of maximising return with a dynamic rate program.
Lack of external financing
Most vendor financing programs are on your balance sheet, which may not agree with your strategy.
Scale, but how?
Most vendor financing programs fail to scale across your vendor base - primarily due to lack of awareness.
Presenting, a dynamic cash discounting platform built for corporate finance teams
On-Balance Sheet
Optimise working capital while earning up to 12% risk-free treasury returns
Pay your vendors early and capture dynamic cash discounts for EBITDA improvement.
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Off-Balance Sheet
Extend payable days by leveraging funds from external financiers at 0% interest rate
Access network of 20+ financiers in addition to TReDS platforms. Enable additional working capital facility to all your vendors at a price that works for them.
Price Negotiation
Maximise ROI by letting an AI negotiate a win-win rate with your vendors
Leverage CashFlo’s AI-powered price-discovery engine for discovering the sweet spot for both buyers and vendors
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WhatsApp Based Flow
Increase vendor penetration by enabling 1-click discounting through WhatsApp
Increase awareness and usage rates by choosing a WhatsApp based, managed services flow with support in 10+ languages.
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Managed Service
Hands-on, dedicated managed services to ensure program success
Real value unlock through on-ground team to support buyers and vendors. CashFlo runs extensive program for vendor onboarding and training to use the platform.
Explore our entire suite of Corporate Finance Automation Products
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Unlock the potential of your finance team & boost productivity 10x. Let us show you how.
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What is Dynamic Cash Discounting?
Dynamic cash discounting is a flexible payment method where suppliers offer discounts to buyers in exchange for early payment of invoices. The earlier the payment is made, the larger the discount the supplier provides. Unlike traditional fixed-term discounts, dynamic discounting allows real-time negotiation, optimizing cash flow for both buyers and suppliers. It's commonly used in supply chain finance to improve liquidity and strengthen supplier relationships, as it enables more control over payment terms and offers an incentive for prompt transactions without needing external financing.
How Dynamic Cash Discounting Works:
Invoice Generation: Suppliers submit invoices to buyers via a dynamic discounting platform.
Discount Offer: Suppliers offer early payment discounts based on the buyer's timing preferences using dynamic invoice discounting.
Real-Time Negotiation: Buyers negotiate terms in real-time with dynamic discounting software for flexible agreements.
Payment Processing: Upon agreement, the buyer pays early, and the dynamic discounting solution automatically applies the discount.
Integration with Supply Chain Finance: Enhances liquidity by providing quicker access to funds for suppliers, without external financing.
Financial Benefits: Buyers save on costs while suppliers enjoy faster cash flow, benefiting both parties.
Discount Offer: Suppliers offer early payment discounts based on the buyer's timing preferences using dynamic invoice discounting.
Real-Time Negotiation: Buyers negotiate terms in real-time with dynamic discounting software for flexible agreements.
Payment Processing: Upon agreement, the buyer pays early, and the dynamic discounting solution automatically applies the discount.
Integration with Supply Chain Finance: Enhances liquidity by providing quicker access to funds for suppliers, without external financing.
Financial Benefits: Buyers save on costs while suppliers enjoy faster cash flow, benefiting both parties.
Benefits of Dynamic Cash Discounting
Improved Cash Flow for Suppliers
Dynamic discounting in supply chain finance allows suppliers to receive early payments, boosting liquidity without relying on external financing. This accelerates cash flow, making it easier for suppliers to manage their financial operations.
Cost Savings for Buyers
By using a dynamic discounting platform, buyers can secure discounts by paying invoices early. This reduces overall procurement costs and offers a flexible way to manage working capital efficiently.
Streamlined Payment Processes
Dynamic discounting software automates negotiations and payments, reducing manual effort. This dynamic discounting solution enhances accuracy, simplifies payment workflows, and improves vendor relationships.
Limitations of Dynamic Cash Discounting
1. Complexity in Implementation: Integrating dynamic discounting requires process adjustments and system changes.
2. Supplier Participation: Some suppliers may not be able or willing to participate, reducing benefits for buyers.
3. Cash Flow Constraints: Liquidity issues can hinder dynamic discounting for both buyers and suppliers.
4. Technology Dependence: Both parties must have access to and be familiar with the required software.
5. Potential Mismanagement: Without oversight, discounts and payment terms may be mismanaged, impacting expected benefits.
2. Supplier Participation: Some suppliers may not be able or willing to participate, reducing benefits for buyers.
3. Cash Flow Constraints: Liquidity issues can hinder dynamic discounting for both buyers and suppliers.
4. Technology Dependence: Both parties must have access to and be familiar with the required software.
5. Potential Mismanagement: Without oversight, discounts and payment terms may be mismanaged, impacting expected benefits.
Who Uses Dynamic Cash Discounting?
1. Large Corporations and SMEs: They use dynamic discounting platforms to optimize cash flow, secure early payment discounts, and negotiate favorable terms.
2. Suppliers: Suppliers accelerate cash flow and reduce reliance on external financing with dynamic discounting solutions.
3. Supply Chain Finance Participants: These businesses enhance liquidity and strengthen supply chain relationships through dynamic discounting.
4. Financial Managers: They leverage dynamic discounting benefits to streamline payment processes and improve financial management.
5. Dynamic Discounting Providers: Providers offer tools to facilitate efficient discounting and improve financial operations.
2. Suppliers: Suppliers accelerate cash flow and reduce reliance on external financing with dynamic discounting solutions.
3. Supply Chain Finance Participants: These businesses enhance liquidity and strengthen supply chain relationships through dynamic discounting.
4. Financial Managers: They leverage dynamic discounting benefits to streamline payment processes and improve financial management.
5. Dynamic Discounting Providers: Providers offer tools to facilitate efficient discounting and improve financial operations.
Enhance Working Capital and ROI with Our Dynamic Cash Discounting Platform
Optimized Working Capital: Achieve up to 12% risk-free treasury returns with our dynamic discounting platform, optimizing your working capital.
Extended Payable Days: Leverage 0% interest funds to extend payable days using dynamic discounting in supply chain finance.
AI-Driven Price Negotiation: Maximize ROI with AI-powered software, negotiating favorable vendor rates.
WhatsApp-Based Flow: Simplify transactions and boost vendor engagement with one-click discounting via WhatsApp.
Dedicated Managed Services: Receive hands-on support for successful program implementation.
Extended Payable Days: Leverage 0% interest funds to extend payable days using dynamic discounting in supply chain finance.
AI-Driven Price Negotiation: Maximize ROI with AI-powered software, negotiating favorable vendor rates.
WhatsApp-Based Flow: Simplify transactions and boost vendor engagement with one-click discounting via WhatsApp.
Dedicated Managed Services: Receive hands-on support for successful program implementation.
Frequently Asked Questions
How can dynamic cash discounting impact supplier relationships?
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How does dynamic cash discounting work?
How does dynamic cash discounting differ from supply chain finance?
What role do suppliers play in dynamic cash discounting?
Can dynamic cash discounting be customized for different industries?
Are there any compliance issues related to dynamic cash discounting?
How does dynamic cash discounting integrate with ERP systems?
What support is available for businesses using dynamic cash discounting?
Power your corporate finance team with CashFlo
Speak to an expert from our team to see how CashFlo can help you automate and elevate your corporate finance function
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