Dynamic discounting

A form of early payment discounting in which the amount of the discount (for early payment) is determined by a negotiation or auction.

Dynamic discounting is usually facilitated by an intermediary.

The timing of the payment may also be 'dynamic' or negotiable: the earlier the payment, the greater the early payment discount.

See also

• Factoring
• Invoice discounting
• Supply chain finance
• Market-based approaches to cash management and liquidity