Why Fast Service Payments Benefit Your Business
It’s no secret that cash flow is one of the most important aspects of maintaining optimal progress and expansion in any industry. A company that has adequate access to capital is capable of fully investing its funds and utilising its assets. However, many businesses deal with intermittent cash flow gaps due to the time it takes for ACH bank transfers and other payment methods to clear. The delays can also cause accounting and restocking issues that unnecessarily complicate and disrupt the business and heighten the risk of errors and oversights.
Bank to bank transfers have historically been the norm for businesses of all sizes, but in recent years, faster payment services are starting to give companies greater control, convenience, and speed. These technological platforms have become essential for many businesses that need to continually pay for a high volume of products or services to stay running at an optimal pace. With that said, here are five reasons why being able to pay for services faster can benefit any business:
1. Restocking Quickly and Efficiently
When you’re trying to pay for the delivery of mission-critical inventory or equipment, having to wait days or even 24 hours for a conventional ACH transfer to reach the supplier can be a temporary drain on cash flow and sales. Using a ‘faster payments processing service’ is one way you can reduce the wait time down to a few hours. That means that you can have an order placed and paid for before noon on the same business day, with zero interruptions in your company’s stock or service.
2. Enhanced Security and Legal Protection
Another reason why a company might consider using a faster payments service is the fact that platforms like AccessPay are based on extremely secure IP infrastructures and all transactions are protected. Plus, with certain systems such as AccessPay, payments as large as £250,000 can be sent and received in the same business day, versus 2-3 business days for a conventional bank transfer. Fraud protection is also included, so the company is even more protected than it would be if it were to pay for services directly out of its business checking account.
3. Ability to Detect Insufficient Funds Errors More Quickly
Nowadays, many businesses overuse automated billing features and can easily overextend their account balance if careful accounting isn’t practiced. With a faster payments service, you’ll have an instant record of the balance and whether the payment was successfully received by the intended recipient. That way if there isn’t enough money available in the account you’ll know about it right away rather than days later, which will allow for a more expeditious investigation and remedying of the problem.
4. Accurate and Up-to-Date Accounting
When you’re using a faster payments service, the money is stored in a secure account that is similar to escrow, so, when you send a payment to a service provider or supplier, that money is processed by the payment processor on your company’s behalf and is available in the supplier’s account within a matter of hours. That means the current ledger in your payment account will always be accurate up to the same day, with no possibility of oversights due to 3-day delays.
5. Faster Payroll Processing and B2B Payments
When it comes to time to pay employees and other businesses for their services, you don’t want to make them wait days to receive the funds in their bank account. Even popular payment processors like PayPal require you to transfer the funds to a bank account via transfer. Faster payment processing services issue the money directly from your account into the supplier’s bank account balance, with no effort required on their behalf, so it’s mutually beneficial and more convenient for all of the parties involved.
Streamlining Payments to Reach Milestones Faster
In closing, one final bonus reason why a business might want to expedite its service payments is to speed through goals and deadlines at a faster pace. While some small businesses are okay dealing with the delays, others are focused on maxing out the company’s growth potential. If optimal progress is your goal, then you should consider using something faster than typical bank transfers to both send and receive funds.