eyko Ideas
An early-pay discount is only a good deal if its implied return beats what the cash costs you elsewhere. An Early Payment Discount Analysis Playbook reads supplier terms, offered discounts, and your current borrowing cost, then ranks each offer by annualized return so you take the ones that pay and decline the ones that do not.
The Challenge
A 2/10 net 30 term looks like a small 2% saving, but annualized it is worth roughly 36%. Without converting each offer to an annualized return, the genuinely valuable discounts look the same as the marginal ones.
A discount only beats holding the cash if its return clears your borrowing cost. When that hurdle is not in the analysis, the team either takes every offer and drains liquidity, or takes none and leaves real savings behind.
The cost-of-cash hurdle changes as the facility is drawn or repaid. A discount that was not worth taking while the facility carried a balance can become worth taking once it is undrawn, but no one re-runs the math.
How eyko Solves It
An Early Payment Discount Analysis Playbook connects to your ERP and AP, converts each offered discount to an implied annualized return, compares it against your current borrowing cost, and ranks the offers so you take the ones that clear the hurdle and decline the rest.
1.1M of payables offer early-pay discounts with an implied annualized return above the current borrowing cost of 7.4%. The strongest is a 2/10 net 30 term worth roughly 36% annualized. Another 0.8M of offers fall below the hurdle.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Early payment discount analysis finds the supplier offers whose implied return beats your cost of cash. The Playbook reads supplier terms and offered discounts across your ERP, converts each to an annualized return, and compares it against your current borrowing cost, so the discounts genuinely worth taking are separated from the ones that only look attractive at the headline rate.
This is decision intelligence in practice: the what, the why, and the what next from your live data.
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View IdeaFAQ
Everything you need to know about Early Payment Discount Analysis.
Early payment discount analysis identifies the supplier discounts whose implied annualized return beats your cost of cash. eyko reads supplier terms and offered discounts from your ERP, converts each to an annualized return, compares it against your current borrowing cost, and ranks the offers so you take the discounts that pay and decline the ones that fall below the hurdle.
The Playbook converts each offer to an implied annualized return and compares it to your current borrowing cost. A 2/10 net 30 term worth roughly 36% annualized clears a 7.4% borrowing cost comfortably and is worth taking, while offers below that hurdle cost more in carry than they save and are declined.
It reads from your ERP general ledger and AP, alongside any data platform you already run. There is no separate data project to start, and it works with systems such as SAP, Oracle, NetSuite, and Workday.
Yes. The cost-of-cash hurdle moves as the facility is drawn or repaid, so a discount that was not worth taking while the facility carried a balance can become worth taking once it is undrawn. The Playbook re-runs the comparison on its beat, so the set of worthwhile discounts stays current.
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