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Article Number: 000003202

Dynamic Payment Terms allow you to get paid as soon as your invoices are approved in exchange for a prorated discount. The advantage of Dynamic Payment Terms is that your payment is processed as soon as the invoice is approved and the discount taken for the payment is calculated on a sliding scale. Once you agree with your buyer on a sliding scale, it is fixed and the discount will always be calculated using that same reference. Invoices approved sooner and therefore paid quicker will have a higher discount amount than invoices that are approved slower, and therefore paid later.  Click here to watch a brief informational video on how Dynamic Payment Terms work. 

Your customer can offer you two different types of Dynamic Payment Terms: a full sliding scale, and a sliding scale with a discount window (cliff).           


Example 1 - Full sliding scale of a "1.5%  NET 30 - ASAP" Dynamic Payment Term         

With that kind of Dynamic Payment Terms that your customer may offer you, if an invoice is approved in your customers’ accounts payable process on the 10th day, that invoice will automatically be added to their payment run on the 10th day and a prorated discount will be taken.

Example 2 - Sliding scale with a "1.5% 10 NET 30 - ASAP" Dynamic Payment Term  

With that kind of Dynamic Payment Terms that your customer may offer you, if an invoice is approved in your customers’ accounts payable process on the 15th day (after the traditional 10 day discount window has expired), that invoice will automatically be added to their payment run on the 15th day and a prorated discount will be taken.