One of the purposes of running a business is to make money. However, many profitable organizations do not have enough funds to pay their employees or suppliers. Sounds ironic, doesn’t it? But this is not an unusual situation. Many businesses might look profitable on their financial statements but go through a phenomenon known as negative cash-flow.
Negative cash-flow occurs when your outgoings exceed your incomings. One major reason for this is that there is a time delay in receiving funds from your customers. This is because most banks have a settlement period of up to 7 days. This means you should not expect to get paid immediately after your customer makes a purchase on your card machine or ecommerce website.
In the past, most banks postponed release of payment from merchant accounts to the business bank account to avoid fraud and keep funds secure.
This has changed in recent years. Banks now recognize that the world economy is moving at a fast pace and organizations need to have immediate access to their funds to meet their financial commitments and reinvest in their business in order to grow.
Hence the concepts of next day and same day settlement were introduced.
What is next day settlement?
Same day settlement and next day settlement involve release of funds to your business bank account from 3 to 24 hours. Essentially, the acquiring bank authorizes release of payment from the merchant account to the business bank account without any delay
Same day and next day settlements have solved many problems for businesses. In fact, they have brought organizations numerous benefits.
What are the benefits of same day and next day settlement?
So what is so great about same day and next day settlement, and how can businesses benefit from them? Let us list some advantages of same day and next day settlements for your business:
- Cash-flow: Since you will be getting your money on time, you would have instant access to your cash and you would not need to worry about paying your employees and suppliers on time. You would not have to fret about payment reminders, overdue invoices and an increasing receivable balance. Your mind will be at peace.
- Streamlined operations and improved productivity: Business operations cannot run smoothly if you have employees and vendors asking you for their dues all the time. Vendors willwithhold their supplies; employees will not be motivated to give their best. But if you pay your dues on time, employees and vendors will be happy and your operations will continue to run smoothly. Happy suppliers and employees contribute to a happier organization!
- Business Growth: Because you will no longer be worried about cash-flow issues, you could focus your energy on long-term business growth. You could re-invest some of your cash in re-building or expanding your business premises. You could also invest some money in new stock or even hiring new highly skilled employees. In short, you could do everything that could help your business grow.
Are you ready to take advantage of same day and next day settlements? If you are a new business looking for payment solutions, simply email or call us; one of our representatives will get in touch with you as soon as possible.
If you are an established business looking for a merchant services provider that offers next day settlement, we at CutPay make switching convenient.
Our team of experts will come up with a customized pricing package that will suit your requirements and meet all your needs. We will take care of everything from start to finish.
So what are you waiting for? Get in touch NOW!
Please email us at firstname.lastname@example.org or call us at 0191 500 6575. And let us take care of your payment needs.