Have excess cash? Generate risk free returns and improve your supplier relationships.
'Discounting' refers to paying an invoice early for a small percentage discount.
With Discount Strategies you can advertise your willingness to pay early by creating a preferred discount table and tailoring terms.
To get started offering early payments set up a Discount Strategy by following the steps below:
- Select your Company Name
- Select Discount Strategies
On Discount Strategies you will see:
- Tables (option to set defaults and add more tables)
- Vendor List
- To set terms and turn on a table choose 'Standard Discount' table to edit (will be marked as default)
2. Select Edit to create the terms you wish
- First Discount Table (Chose a strategy name)
- Choose preferred Target Return
- Select a Rate per terms (Ex. A rate of 3% for 30 days would decrease as the due date approaches, as exemplified in the graph)
- Set Blackout Window (day after which you no longer want to offer a discount)
- Set Minimum Return
After you have created a Strategy, assign vendors to that group.
4. When a customer has requested early payment, you can view the bills and discounts here.
5. Check the bills you want to pay early, and choose 'Pay & Save'
6. Once selected, you will be directed to the payment queue, to complete the payment.
7. Review all information before submitting payment
For vendor instructions on requesting early payment click here.