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Create a Dynamic Discounting Product

Create a Dynamic Discounting Product

Dynamic Discounting is a financial arrangement where a buyer (the payer) arranges for its treasury or a financial institution to purchase their suppliers invoices early.

In order to create a Dynamic Discounting Product you need to:

  1. Create two Companies for the Payer: A Customer account and a Funder account

  2. Create a Product Group and Structure for a Dynamic Discounting Product

  3. Apply the created Product to a Deal

Create two Companies for the Payer

In Dynamic Discounting with no 3rd party (Funder) involvement, so the Payer assumes the role of a Funder and reconciles payments in the system.

  1. First, the platform Admin would need to set up two Company accounts:

  • "Corporate A" as a Customer

  • "Corporate A" as a Funder

  1. When setting up the Dynamic Discounting Deal the platform admin will need to assign “Corporate A” Funder as the Funder for the deal

  2. Once instruments are funded, “Corporate A” Funder will need log in, go to their Repayments Reconciliation page - filter Instruments for that Deal and mark them all as Paid, because no repayments are needed for Dynamic Discounting