Early Pay Discounts
See how much AP could be saving your company!
Based on a multi-year study of nearly 400 AP departments, IOFM found that best practice organizations typically:
- Can earn an early pay discount on 20% of their PO invoices;
- Typical early-pay discounts are 2% of PO spend;*
- And, top-performing teams capture 98% of their early-pay opportunities.
Find exclusive benchmarking data and innovative suggestions for taking it a step further in IOFM's Early Pay Discount Benchmarks Report.
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* This is a conservative calculation. Anecdotal research conducted in the first half of 2020 finds that vendors are increasingly offering higher discounts of as much as 5%-7% while cash remains tight during the COVID-19 pandemic. Depending upon conditions and when in the year the discount was captured, the total savings could be even higher! (For example, a 2% discount on Net 10 would be the equivalent of a 36.7% annual rate of return.)