Dynamic Discounting on Verified Receipt

Dynamically offer early payment discounts to your suppliers based on verified, immutable invoice data. This turns your AP ledger into a strategic asset, allowing you to:

• Improve Days Payable Outstanding (DPO) by paying only when strategically beneficial.
• Generate risk-free yield on cash by capturing discounts (e.g., 2% for 10 days nets an effective annualized return of over 70%).
• Example: A manufacturer with $100M in monthly AP could capture $2M in discounts annually by paying just 10 days early on 10% of its invoices.

Replace manual, error-prone invoice matching with automated, trustless verification on a shared ledger. Every payment obligation is cryptographically verified against the original purchase order and goods receipt.

• Eliminate duplicate payments and invoice fraud, which costs businesses an estimated 5% of revenue annually.
• Automate 3-way matching (PO, GRN, Invoice) in seconds, reducing AP processing costs by up to 80%.
• Real-world impact: A global retailer reduced its AP team's reconciliation workload by 70%, reallocating staff to strategic analysis.

Offer your suppliers a transparent, low-cost source of liquidity. Suppliers can request early payment on verified invoices at rates better than traditional factoring.

• Improve supply chain resilience by providing key suppliers with predictable, fast cash flow.
• Negotiate better base terms by demonstrating you are a preferred, reliable payer.
• Case Study: An automotive OEM used a blockchain-based dynamic discounting platform to provide liquidity to over 500 SMEs in its supply chain, strengthening relationships and securing priority during parts shortages.

Maintain an immutable, timestamped record of every financial obligation and payment. This creates a perfect audit trail for internal controls, regulatory compliance, and ESG (Environmental, Social, Governance) reporting.

• Simplify SOX and financial audits with provable, real-time transaction histories.
• Track and report on Scope 3 emissions and supplier diversity metrics directly from payment flows.
• Quantifiable benefit: Reduce external audit preparation time and costs by an estimated 40% by providing auditors with direct, read-only access to verified ledger data.

Deploy without a costly, disruptive rip-and-replace of your current financial systems. Blockchain acts as a secure middleware layer that connects and verifies data between your ERP (SAP, Oracle) and your suppliers' systems.

• Leverage existing investments in SAP Ariba, Coupa, or other procurement software.
• Implementation typically takes weeks, not years, with a clear ROI timeline.
• Key outcome: Achieve the benefits of digitization and automation while maintaining your core system of record and business processes.

Dynamic discounting is the foundational use case for a broader Digital Corporate Treasury. Verified receivables and payables become programmable assets on a balance sheet.

• Future-state vision: Use tokenized invoices as collateral for on-chain borrowing or to participate in decentralized finance (DeFi) pools for additional yield.
• Create a real-time, consolidated view of global cash and liquidity positions.
• Strategic advantage: Transition from a reactive treasury function to a proactive profit center that actively manages corporate assets 24/7.

Before blockchain, dynamic discounting is a manual, error-prone process. Buyers and suppliers operate on separate, unverified ledgers, leading to:

• Invoice disputes over payment terms and delivery confirmation.
• Slow reconciliation delaying discount capture (often 5-10 business days).
• Limited program adoption due to high administrative overhead and lack of trust.

Example: A manufacturer's 2% early payment discount is often lost in email chains and ERP mismatches.

A shared, immutable ledger creates a verified receipt lifecycle. Upon delivery, a cryptographically signed receipt is logged on-chain, acting as the single source of truth for:

• Automated trigger for dynamic discount terms.
• Instant audit trail for both buyer and supplier finance teams.
• Elimination of disputes over delivery and acceptance status.

This turns discounting from a negotiation into a programmable, self-executing agreement.

Blockchain-enabled dynamic discounting directly impacts the balance sheet:

• Buyers capture more early payment discounts (typically 1-3% of invoice value) by automating the process, improving Days Payable Outstanding (DPO) efficiency.
• Suppliers gain predictable, accelerated cash flow, reducing Days Sales Outstanding (DSO) and reliance on expensive factoring (saving 2-8% in financing costs).

Quantifiable Benefit: For a company with $100M in annual payable spend, automating discount capture can yield $1-3M in annual savings or earned income.

Justification begins with a controlled, high-value pilot. Focus on:

1. Select a strategic supplier category with high-volume, repeat transactions.
2. Integrate with existing ERP/AP systems via APIs to minimize disruption.
3. Define clear KPIs: Discount capture rate, processing time reduction, and administrative cost savings.
4. Scale gradually to other suppliers and financial partners on the network.

Key Consideration: Success depends on partner onboarding and clear legal frameworks for the digital agreements.

The true value extends beyond immediate ROI to strategic supply chain resilience:

• Strengthen supplier relationships by offering a fair, transparent financing tool.
• Enhance ESG/Sustainability reporting by demonstrating support for smaller supplier financial health.
• Future-proof operations by building infrastructure for tokenized assets and DeFi integration for institutional-grade liquidity.

This transforms the treasury function from a cost center into a strategic profit and stability center.

Eliminate the 3-way match (PO, receipt, invoice) with a single source of truth. Every transaction step is recorded on-chain, creating an immutable audit trail.

• Example: An automotive parts distributor reduced its accounts payable processing time by 70% and cut reconciliation errors to near zero, saving over $500k annually in operational overhead.
• ROI Driver: Direct labor cost savings, faster close cycles, and a bulletproof compliance record for financial and ESG reporting.