Early Payment Program

Benefits to Participating

The benefits to participating in the Dollar Tree and Family Dollar Early Payment Program include:

Accelerated Cash Flow – Accelerate turning your receivables to cash from as many as 30-60 days to as few as 2 days after invoice approval.
Reduced Days Sales Outstanding (DSO) – By accelerating your conversion of receivables to cash, you will reduce your DSO and free up working capital for other needs… without tapping into your line of credit or factoring receivables.
Flexibility – Have complete user control to turn off the early payment offer at any time.

Two Payment Programs

Dollar Tree, Inc. offers the option of accelerating your payments through two programs:

Standing Early Payment Program (pays all of your invoices as early as possible)
Dynamic Early Payment Program (allows you to select which invoices to pay early)

Two Programs to Accelerate Payments

The information below explains the differences between our two early payment terms. The early payment program is optional and vendors/suppliers will be paid per purchase order terms if they do not participate. A minimum of two days is required for Dollar Tree to receive your early payment request and process it. All discounts in these programs are in addition to any previously agreed upon discounts.

Standing Early Payment Term... Always On

This term utilizes a prorated discount methodology to reward those suppliers who submit error-free invoices electronically with payment in as little as 2 days from invoice approval.
The discount is prorated based on the number of days the invoice is paid early as compared to the “net term." This method takes into account the variability from supplier to supplier and from invoice to invoice of the number of days it takes to approve an invoice
Once the term is accepted by the supplier within the Ariba Network, this discount term is “always on” — meaning that all invoices will have a prorated discount applied.

Dynamic Early Payment Term... Ad Hoc

This term is NOT “always on." This term is applied to invoices that the supplier chooses on an ad hoc basis.
This term carries a higher discount rate than the Standing Early Payment program.
Only those invoices specifically selected by the supplier in the Ariba Network for payment will have an early payment discount applied.
The discount is prorated based on the number of days the invoice is paid early as compared to the “net term."

How Do Vendors & Suppliers Participate?

If your company is already transacting with Dollar Tree, Inc. on the Ariba network, simply follow the steps below to enroll in one of our early payment terms.

If your company is currently not transacting with Dollar Tree, Inc. on the Ariba network, please contact us to determine if early payments are possible. Suppliers may email dtsupplier@dollartree.com and merchandise vendors may email merpayables@dollartree.com.

Standing Early Payment Term

To enroll in the Standing Early Payment Program, which pays all of your invoices as early as possible:

Log in to your Ariba supplier account
(http://supplier.ariba.com).
Go to Early Payment Terms > Proposed Offers at the bottom left of your “home” screen.
Find the offer from Dollar Tree, Inc. and select “Review/Accept.” Review the terms and click “Accept Offer.”
New invoices from the point of offer acceptance forward will have the early payment discounts applied. To reject the offer once enrolled, follow the same process above and choose “Reject Offer.” New invoices from the point of offer rejection forward will not have the discounts applied.

Dynamic Early Payment Term

To take an ad hoc discount using the Dynamic Early Payment Program, which allows you to select individual invoices for early payment:

Log in to your Ariba supplier account
(http://supplier.ariba.com).
Go to Inbox > Early Payments
Select the payments you’d like to receive early.
Choose “Review/Accept Early Payment Offer.”
The cash optimizer (optional) will automatically select the invoices with the smallest discount to achieve your desired working capital goal.