Today’s working capital needs aren’t static. Supplier cash requirements can change by time of year, business cycle, industry, or even purchase order. And not all invoices get approved in the same number of days. That’s why years ago, Bavelos Group founders invented a powerful new early payment method, known as “Dynamic Discounting”. This software enabled method can yield 15-25% more savings than static early payment terms alone. At Bavelos, we understand dynamic discounting, when and how to use it, and how to apply it holistically as part of a comprehensive working capital strategy.
One Size Doesn’t Fit All
Most payment terms are standard fixed terms like “net 30” or “net 45”. Traditionally, buyers offer early payment terms such as “2% 10 net 30” to accelerate cash to suppliers in return for discounts. But not all invoices get approved in under 10 days. And not all suppliers will agree to a 2% discount. Our Dynamic Discounting methods solve these challenges by accounting for variations in invoice approval time and helping you get the best terms available from each and every supplier.
Bavelos Dynamic Term Methods
- Micro-targeting of payment terms
- Choice of flexible early payment options
- As Soon As Possible Terms (“ASAP”)
- “Pay Me Now” – ad hoc discount offers