• Posted on: December 17, 2012 by: CashPerform

    Fresh thinking around Dynamic Discounting could be misplaced? Dynamic discounting could be a ‘preferred route’ for some corporates and maybe even SME type businesses.

    However this is all predicated on three key aspects namely:

     

    1)      The corporate that is undertaking the DD initiative can categorise and ‘develop’ systems to meet the correct creditor criteria.

    2)      The supplier affected can take on board the ‘cost/discount’ as they have a high enough net margin.

    3)       That intermediates, whether they be software providers/bankers/pension funds/ PE/VC are in it for the long term and that it is fully sustainable.