Monday 13th October, 2014

The question of the banks waking up to the growth market of dynamic discounting was always of question of when, not if. And it comes as no surprise that one of the first of those banks to do so is The Royal Bank of Scotland (RBS), with the announcement this morning of a partnership with Taulia. The RBS started to dip their toes in the water a couple of years ago, but this partnership indicates a significant validation in both the expected market for the offering, and in the strength of its proposition to customers.

In a nutshell, buyers will be able to offer early payments to their suppliers, who would have invoiced them electronically, in exchange for a discount - the rate of which is calculated dynamically. The earlier the payment to the supplier, the greater the discount will be to the buyer. By taking paper out of the process through e-invoicing, the transaction time is faster, facilitating early payment and creating cost-efficiencies for both the buyer and supplier.

Jon Keating, Taulia’s European managing director, said: “This new partnership builds on our recent financial announcement for the second quarter of this year which highlighted more than 350% growth in comparison to the same quarter in 2013, and clearly demonstrates the strength of our offering and its value to the UK and wider EMEA market.”

For small businesses needing access to cash, dynamic discounting offers a better opportunity than traditional financing methods, which are often unavailable to them. With an ever widening trade credit gap, solutions, and partnerships such as this, aim to provide one way to counter the effects of that on business.