What is Dynamic Discounting?
Put Excess Cash to Work
Dynamic discounting is an early payment solution that utilizes your excess cash to fund supplier early payments for a discount. This solution improves supplier health, reduces cost of goods sold and earns a high return.
Strengthen Supply Chain
Early payments keep suppliers financially stable and removes supply chain volatility.
Reduce Cost of Goods
Improve your bottomline and generate cost savings through discounted invoices.
Earn a Return on Cash
Deploying your cash to achieve discounts earns a higher return than most investments.
How Dynamic Discounting works
Self-funded Early Payments
Dynamic discounting lets you utilize your own capital to fund supplier early payments in exchange for invoice discounts. The earlier a supplier requests payment, the more you save on costs. Invoices can be accelerated at anytime between invoice approval and maturation. Coupled with extended payment terms, you can also receive a working capital benefit from all invoices paid at maturity.
THE LSQ Difference
Smart and Simple Dynamic Discounting
LSQ sits at the intersection of finance, payments and software. Our expertise servicing suppliers for more than 25 years has guided our platform development to create a fast, intuitive and smart working capital platform. See what makes LSQ FastTrack® dynamic discounting different.
Implementation
Quick and easy to launch
An inefficient, unintuitive, or hard-to-implement solution will prevent your dynamic discounting from getting off the ground. LSQ FastTrack offers no-code, SFTP, and API data-integration options that allow you to be up and running – and processing supplier early payments – within days, not months.
Once you’re online, your suppliers can enroll in your dynamic discounting program in less than two minutes with no background checks, liens, or personal information requirements. We simply verify their bank information and they are ready to accept payment on invoices approved by you.
No-code, SFTP, and API implementations
2-minute supplier enrollment with no red tape
Launch in a matter of days, not months
PROGRAM STRUCTURING
Adapt to changing liquidity needs
Structure your program to meet your changing liquidity needs. We provide the most extensive program funding options of any supply chain finance platform.
You can utilize your own cash with dynamic discounting or fund a supply chain finance program through various third-party funding sources including LSQ. Our platform is flexible enough to combine multiple funding sources to run supply chain finance and dynamic discounting programs simultaneously.
Third-party funding sources
Self-funded options
Combine different funding sources
Supplier Utilization & Enrollment
Maximize your investment
Ensuring that the right suppliers get onboarded at the right time is key to the success of your dynamic discounting program. Our team thoroughly analyzes your supplier and accounts payable data to ensure maximum adoption so you can start seeing the quickest return on your investment.
Once your suppliers are segmented, we handle education outreach to help them understand the value of the program and get them on board, so you can stay focused on your business.
BUYER EXPERIENCE
Manage and analyze program success
Intuitive real-time dashboard and reports
Granular invoice and supplier management
Working capital, payment and spend insights
Customizable notifications and alerts
SUPPLIER EXPERIENCE
Expand supplier access to working capital
Click-to-select invoices for early payment
Automate or set payments to new terms
Flexible same-day ACH payments
Advance all receivables with invoice finance
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