The Inside Scoop on our Dynamic Discounting App for NetSuite
What if there was a way to incentivize your clients to pay faster? Everyone from AR clerks to VPs of finance knows early access to cash is key to the survival of the enterprise. Unfortunately, many industries and buyers are known to be slow to pay, DSO feels unnecessarily lengthy, and businesses need more tools to speed up their time to cash. To put it bluntly, many AR departments feel they are officially “at the mercy” of payers and have little-to-no recourse in accelerating their payments to improve cash flow.
That’s where dynamic discounting comes in.
As companies adjust to the “new normal” and economic inflation, a faster time to cash is critical to keeping their businesses afloat (and to scale and expand). That’s why, in July, we launched the world’s first dynamic discounting application powered by Ethereum smart contracts, incentivizing buyers to pay sooner and giving AR teams quicker access to cash without a cumbersome, manual process.
What is Dynamic Discounting?
Faster access to cash and increased control over your AR sounds great, but how does dynamic discounting help you achieve that? Let’s dive in.
Dynamic discounting allows you to adjust payment discounts based on time or other factors to get the money faster from the customer. These discounts are fully customizable for each case, emphasizing the dynamic part of dynamic discounting. With a truly dynamic discounting application, you can decide to whom you want to give discounts, the amount, and when. These dynamic discount offers are auto-executed via smart contracts, with digital funds transfer available over a verifiable, instantaneous, blockchain-based network.
Until now, dynamic discounting systems have been designed for large AP customers who have significant leverage with their sellers to offer static, “take it or leave it” discount rates to sellers. Overreliance on buyer-side AP, legal, treasury, third-party AP platforms and factors to initiate and finalize commercial arrangements have caused friction and delays, excluding the vast majority of suppliers from benefiting from faster payments.
With our AR-centric dynamic discounting application, we’ve turned traditional dynamic discounting on its head. Through this dynamic discounting solution, suppliers control the terms of discounts, allowing them far more flexible terms and time-sensitive discounts any time between the customer invoice creation date and the due date.
By offering payers a seamless, simplified payment experience, they’re more likely to pay on time and even early. Offering these discounts dynamically via the blockchain, with no financial intermediary or fee payment needed to plug the gap, means that suppliers can harness the flexibility of an optimized, graduated discount versus having no discount option at all or providing them through an inefficient manual process.
Let’s get granular
Dynamic discounting is the star of our July 2022 roll-out, but it’s just the tip of the iceberg.
These new features allow Paystand’s SuiteApp customers to supercharge their AR teams, increase productivity, and provide end customers with an exceptional payment experience.
Get to know our collection of self-driving AR capabilities:
Quickly win business with advance deposits for quotes & estimates
The new Paystand Advance Deposits for Quotes & Estimates (Q&E) quickly secures customer commitments and unlocks working capital and efficiency by speeding up time to cash. Currently, AR teams using Q&E cannot accept advance payments from prospects at the early Q&E stage of the sales cycle. However, with our new Advance Deposits feature, AR teams can configure a minimum deposit and accept advance payment. What’s better, upon payment receipt, the Q&E is instantly and automatically converted to a Sales Order.
Serve new customers with cash sales for sales orders
Our Cash Sales for Sales Orders feature allows you to accept instant payments from one-time, walk-in, and cash-basis customers, quickly and easily unlocking new revenue. AR teams have otherwise been unable to receive instant payment against a Sales Order, forcing them to send an invoice and wait for it to be paid. However, your AR team can now accept cash sale payments and settlement (of short-pay invoices) against Sales Orders.
Receive payments efficiently with autopay upon fulfillment
Autopay upon fulfillment accelerates the cash cycle by minimizing repetitive work, errors, and omissions by AR specialists and enhancing the customer experience. In the past, AR teams could only automatically trigger payment charges at the time of shipment, receipt, or fulfillment with manual intervention. With our new functionality, auto payment can happen at a specific time you choose, such as shipment, delivery, or when fulfillment is complete.
For a zero-fee future
We built our business on how payments should be, not how they’ve always been. Everything we do is about reducing and eliminating manual work for you and your employees and delivering a frictionless payment experience to your customers. The launch of our dynamic discounting application for NetSuite is another stepping stone in our journey to build a financial ecosystem that’s cashless, feeless, instant, self-driving, open, and programmable.
Do you want to give your customers easier and more convenient options to wean them off paper checks? Tired of paying credit card interchange fees for customers paying on account? Want to reduce the stress and cost of manual cash application and bank reconciliation in NetSuite? Save your spot for our upcoming live webinar on Thursday, December 1st, at 10:00 AM PST.