Dynamic discounting program of supply chain finance based on a financial information matching platform

The dynamic discounting (DD) program based on the financial information matching platform (FIMP) is an emerging but underexplored supply chain finance (SCF) model. This study explores configuration and operation of DD program, compares analyzes decision between traditional model FIMP-based model, reveals how latter improves cash flow participants. Compared with can improve accuracy daily discount rate for small medium-sized enterprises; it offers enterprises more capital sources helps participants determine optimal payment period. There are three major contributions this study. First, mechanism in promoting not participated by a single buyer supplier, one multiple (N) suppliers FIMP. Once fundamental parameters be met, several enjoy early from specific buyer, thereby improving liquidity benefitting Second, important managerial insights. Suppliers calculate to motivate buyers’ choices. Besides, payments could constituted mixed portfolio buyer’s own that institutions. Third, key parameters. only related cost working also financing costs. Based varying relationships costs, present makes reasonable argument use funds then calculates Finally, conducts sensitivity analysis numerical examples, which finds that, adopting both buyers fairer procurement environment profitable multi-lateral relationships.