Each year, PayStream Advisors releases a whitepaper revealing extensive research of Dynamic Discounting and Working Capital in a broad range of companies.
Each year, we’re reminded of how we’ve got a long way to go. While the adoption of companies surveyed slightly increases year-by-year, it’s always surprising to see that some organizations still haven’t seen the value in strategies like dynamic discounting.
In fact, in the 2014 AP & Working Capital whitepaper by PayStream, 13% of companies reported that capturing early payment discounts was not at all important to their organization. There are two possible explanations for this:
- These companies haven’t assessed the returns of early payment discounts, and therefore see no value in a discounting program
- These companies are focusing on optimizing their accounts payable processes first, as capturing early payment discounts is nearly impossible with outdated, manual processes.
As you know, early payment discounts are near impossible without using electronic payments. Ironically, while supplier resistance ranks as the #1 reason companies aren’t using ePayments, the whitepaper also uncovered that 35% of suppliers are ready to accept Dynamic Discounting offers and 60% are willing to accept ePayments.
The 86.9% of companies who do place a priority on early payment discounts are reaping benefits to the tune of:
- Millions of dollars added to their bottom line
- Reduced resources required to solve discrepancies and respond to inquiries
- Strengthened supplier relationships