Frequently Asked Questions
In simple terms, Dynamic Discounting is the offering of discounts in exchange for early payment on unpaid approved invoices for services or products delivered by a supplier. It is a kind of self-adjusting discount scale agreement between a supplier and the buyer that gives the buyer more flexibility to choose how and when to pay their suppliers in exchange for a lower price or discount for the purchased commodities or services.
Dynamic discounting was first invented and patented in the early 2000s by Xign Corporation (later acquired by JP Morgan) to help businesses utilise this facility and establish early payment terms with suppliers. Since then, there have been several software tools targeting dynamic discounting as a feature of procure-to-pay automation products.
KredX Early is a zero-risk treasury management solution based on the concept of getting discounts through Early Payments. This provides a risk-free alternative option to treasuries of large corporates to deploy surplus funds since the surplus is invested in invoices of the corporate’s own suppliers payable against the corporate.
Our cutting-edge patent pending technology maximises returns for corporates and helps suppliers increase their chances of securing early payment without getting into any operational hassle, thus ensuring 100% supplier satisfaction. Since the discounting is driven by supplier needs, this ensures that the finance cost is not passed onto corporates at any stage.
Treasuries of larger corporates are often on the lookout to invest their surplus in avenues that give them lucrative returns at minimal risk. There is a myriad of products available in the market each offering low returns with low-risk or high returns at a higher risk. KredX Early is a unique corporate treasury tool that combines the best of both worlds, i.e., high returns at zero risk. Here is a quick comparison of KredX Early with popular AMC products available in the market.
|KredX Early||Products available in market (AMC)|
|~16% average yield which is 50% higher than standard market products||~6-8% annualised returns|
|Zero risk investment option||Risky since it is market dependent|
|Complete control on earnings||No control|