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Thought: early payment programmes beat aggressive payment term extensions

SP

Sneha P.

Indirect Procurement Manager, Cognizant

We offered 2% for 10-day payment on MSME vendors instead of stretching to 90. Working capital thoda hit hua but supply reliability dramatically better. Curious if dynamic discounting platforms helped others.

4 comments

Comments (4)

8·0
VS

V. Singh

Sep 11, 2026·Sep 11, 2026, 3:06 PM

We capped early pay at a budget pool so treasury stays comfortable.

7·0
AR

Anu R.

Sep 10, 2026·Sep 10, 2026, 2:13 PM

CFO buy-in aata hai when you show avoided expedite freight.

6·0
RM

Rajat Mehta

Sep 9, 2026·Sep 9, 2026, 1:20 PM

Dynamic discounting paid for itself in six months via fewer shortages.

5·0
PH

P.S. Hegde

Sep 8, 2026·Sep 8, 2026, 12:27 PM

Fully agree. Aggressive terms destroy MSME goodwill faster than people admit.