Early Payment Discounts

Early payment discounts are reductions in invoice amounts offered by suppliers in exchange for faster payment. Instead of waiting 30 days, suppliers receive payment in 5-10 days and offer a 1-3% discount in return.

PAIDD manages the entire process automatically: identifies discount opportunities, routes requests through your approval workflows, generates credit notes, processes early payments, and tracks all savings. Everything is handled without manual intervention.

Typical savings range from 1-3% on eligible invoices. With average uptake rates of 20-40% of supplier spend, most organisations see annual savings of 0.1-0.9% of total procurement spend, plus improved supplier relationships and cash flow.

Early payment discounts demonstrate proactive supplier support and help meet prompt payment requirements. PAIDD provides complete audit trails showing payment acceleration efforts, which strengthens your compliance position during government spot checks.

Yes, PAIDD lets you configure approval workflows based on discount amount, supplier, or department. Set spending limits, require multiple approvals for larger discounts, and define which managers can approve different discount levels.

PAIDD provides comprehensive reporting including total savings achieved, discount rates by supplier, uptake rates, cash flow impact, and ROI calculations. All reports include audit trails for compliance and financial reporting.

Suppliers can opt into early payment programs through PAIDD's supplier portal. They set their preferred discount rates and terms, and can request early payment on individual invoices or set up automatic terms for all invoices.