The ability to quickly collect money from your credit and debit card transactions has a big impact on your business. Cash is king for a business owner. When you don’t have cash, your business goes into crisis mode. For companies in an undesirable position where cash is tight, or inventory moves in and out the door very quickly, having more dollars in the bank means that you can spend more time operating your store. Because many vendors offer discounts for early payments, there is a potential for real savings when invoices can be paid more quickly. Furthermore, the steady transition from cash to credit and debit cards means that business owners are going to see bigger balances in their terminal and POS batches.
Capital Processing Network makes is possible for just about any business to benefit from next day funding. Even if you have substantial cash reserves in the bank, there are plenty of other necessary reasons to switch to a quicker payment processing option. Aside from the need to cover unexpected expenses, next day funding options take the juggling out of everyday financing and payroll allocation making accounting procedures easier. As many small and medium sized company owners know, short term financing options can dry up in a credit crunch, so the ability to collect receivables more quickly may offer a tantalizing alternative to using a line of credit from your bank.
What is next day funding? As the name implies, it means that you can get paid tomorrow for the batch you settle today. If a company batches on Friday, that deposit cannot be routed to a bank account until Monday due to the Federal ACH system. Some organizations may wait 3 to 5 days to receive funds from Visa, MasterCard, Discover, and American Express, but there are solutions that let you get paid the next day. Normally, this means that you have to settle your batch before a designated hour (such as 7-10PM Eastern, but your processor may vary) to see your money deposited the next day. Credit card machines, readers, ecommerce, and point- of-sale equipment can be programmed to automatically settle prior to a cutoff time, or during times of low activity, so transactions can more quickly turn into working capital in less time.
As a successful business owner, you deserve to get quick access to your money. Because credit and debit card transactions are overtaking cash as a preferred payment method, stores and service providers won’t have as much access to cash deposits in order to pay anxious vendors. By using next day funding options from your merchant account, you can streamline your cash flow and get back to focusing on your business.