Here are some benefits to buyers:
Cash flow management: By offering early payment discounts, buyers can manage their cash flow more effectively by reducing the amount of outstanding payables. This helps buyers to free up cash and reinvest in other areas of the business.
Strengthen supplier relationships: Dynamic discounting can help buyers build stronger relationships with its suppliers. By offering early payment, buyers can show that it values its suppliers and is willing to work with them to support their cash flow needs.
Cost savings: By taking advantage of early payment discounts, buyers can reduce their overall costs of goods sold. This can help buyers to remain competitive in the market and increase its profitability.
Supply chain efficiency: Dynamic discounting can help to streamline the invoicing and payment processes, which can improve the overall efficiency of the supply chain. This can lead to faster payment processing times, reduced manual labor, and improved accuracy of invoices.