An AI dynamic discounting agent looks at approved bills and, for each, lays out what the discount would be at different payment dates under the agreed scale.
A vendor invites early payment for a reduction.
The agent captures the terms and the invoices covered.
It compares the sliding reduction with the cost of paying early.
Offers are ordered by the benefit of paying each sooner.
Treasury selects offers and sets the funding limit.
Accepted and declined offers are logged by vendor.
It compares each option with your cost of funds and cash position rules, and ranks those that fit your policy.
It prepares the proposed pay dates and any supplier offer for your team to approve.
Unlike a fixed discount, a sliding scale needs a calculation on every bill and a view of cash across all of them. Doing this by hand rarely happens, so the opportunity stays unused.
The right date depends on the amount, the scale and the days left.
Taking one discount uses funds that another bill or priority might need.
Vendors must opt in, and not every supplier wants early payment.
A bill can only be offered early once it is approved.
Limits on spend per run or per vendor must be checked each time.
The agent selects bills that are approved and from suppliers who have agreed to a discount scale.
For each bill it works out the discount available at each possible payment date, using the supplier's agreed rates.
Options are checked against your cost of funds, budget for early payment and any per-vendor limits.
The agent orders options by value and fit with cash availability, and flags those that need treasury input.
A proposal with dates, amounts and discounts is passed to finance, which accepts, edits or declines each line.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Offer handling | Offers arrive by email and are judged one at a time. | Agent collects offers and sets them side by side. |
| Pricing the reduction | Annualised value is worked out by hand. | The reduction is compared with the cost of funds you set. |
| Choosing among invoices | Whichever offer arrives first gets the cash. | Offers are ranked so limited cash goes where the return is best. |
| Policy fit | Early payment to risky vendors goes unchecked. | Vendor risk flags are shown beside each offer. |
| Record keeping | Accepted offers are scattered across inboxes. | Each decision is logged against the bill. |
| If | Then | Who decides |
|---|---|---|
| Vendor offers a sliding reduction | Compute the reduction at each payment date | Treasury analyst |
| Offer is below the cost of funds | Mark as unattractive | Treasury lead |
| Funding limit is already used | Show remaining offers as unfunded | Treasury lead |
| Vendor has a risk flag | Show the flag beside the offer | Procurement lead |
| Invoice is not approved | Hold the offer until approval | Approver |
| Offer expires soon | Raise it at the top of the list | Treasury analyst |
The new terms replace the old and the change is logged. The treasury analyst re-checks the ranking.
Paying early raises exposure, so the agent shows the risk flag. The procurement lead decides if early payment is wise.
The agent notes that the agreement may need amendment. Legal or procurement decides if paper is needed.
They are ranked on return and shown with the shortfall. Treasury makes the choice.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Begin with vendors who already offer early payment reductions.
Compare the agent's ranking with the decisions treasury makes anyway.
Show vendor risk beside offers before any acceptance.
Invite more vendors with limits and sign-offs retained.
Discount value = sum of discounts accepted on early-paid bills in the period, reported with the days brought forwardRead it with the cash cost of paying earlier. A large number paid very early may not be worth the funds used.
Quick answers to what people ask most about dynamic discounting.
Book a demoIt is a payment arrangement where a supplier's discount increases the earlier an approved invoice is paid. The buyer picks the date that balances the saving against its cash needs.
A fixed discount has one deadline and one rate. A sliding scale gives a different discount for each possible payment date, so each bill needs its own calculation.
It prepares the options and any message. Your team approves and sends offers and keeps the supplier relationship.
Approved bills, the agreed discount scale for each supplier, payment terms, and the rules your finance team sets for early payment.
An early payment discount is a reduction a supplier offers if an invoice is paid before its normal due date, often written as terms like 2/10 net 30.
→Payment terms validation is the check that the terms on an invoice, such as net 30 or net 60, match the terms agreed in the contract and held in the vendor record.
→Payment date optimization is the practice of choosing when to pay each approved bill so that terms are respected, discounts are caught and cash is used well.
→A late payment fee is a charge a supplier applies when an invoice is not paid by its due date, usually a flat amount or a percentage of the balance.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
