---
title: "Dynamic discounting"
description: "Dynamic discounting — A buyer-funded early-payment arrangement in which the discount slides with how early a bill is paid, rather than a fixed 2/10 net 30. The buyer pays from its own cash; no third party is involved."
canonical: "https://lopifi.com/glossary/dynamic-discounting"
---

# Dynamic discounting

> Dynamic discounting — A buyer-funded early-payment arrangement in which the discount slides with how early a bill is paid, rather than a fixed 2/10 net 30. The buyer pays from its own cash; no third party is involved.

Source: https://lopifi.com/glossary/dynamic-discounting
Part of: Lopifi — Planned: US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is dynamic discounting?** In accounting, dynamic discounting means a buyer-funded early-payment arrangement in which the discount slides with how early a bill is paid, rather than a fixed 2/10 net 30. The buyer pays from its own cash; no third party is involved.

## Words this system refuses for it

- supply chain finance (a funder pays the vendor)
- early-payment discount (the fixed version)

- **Category:** Payables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/lexicon)
- **Related:** bill