Converting Payments Into Cash: DIRECT PAYMENTS

CASH FLOW MANAGEMENT

Converting Payments Into Cash:

DIRECT PAYMENTS

Robert Inkaka Kanyamanza

A recent analysis by ROBERTKA Business Solutions estimated that companies spend $3 to $7 to handle incoming cheque. Handling the payment electronically virtually eliminate this cost. With new web based direct payment services, businesses that receive regular payments can set up regular debits – weekly, monthly or quarterly – from their customers’ accounts up to 173 days in advance.

Primarily this means you have much higher insurance of getting paid on time, a big boost for cash flow.

You save on:

  • collections operating costs,
  • the accumulated overhead costs of opening envelopes,
  • the overhead costs of comparing cheques to invoices,
  • operation costs of photocopying,
  • the accumulated costs of listing and balancing cheques for deposits and, of course,
  • the time of the actual trip to the bank to make the deposit.

At the same time, you don’t give up anything on security or flexibility, In fact, many organisation encounter risks to cash flow with cheque alterations, for instance, that are not possible with a secure electronic transaction. Electronic payment also provides an answer to the old cash-flow killer of returned NSF cheques, which in 70 per cent of cases is due customers missing their banks’ cut-off deadlines for deposits. In an electronic environment, you can instruct the system to re-present the NSF payment anytime within 20 days. (You should, of course, do it sooner than that!)

Need to set up a proper, secure and cost efficient electronic payment system for your business?

ROBERTKA Business Solutions
Is here to help

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About ROBERTKA Media.Inc 178 Articles
We are a Media and Communication Company specialized in the production of business information contents, financial and management notions and analysis. We also produce and publish World and African business headline news. We mostly focus on producing text and video analysis covering worldwide economic, commercial, management and financial trends which have a strong leaning and inclination on African businesses and affaires. We publish under the banner of our consultancy house: ROBERTKA Business Solutions.inc Join the conversation!

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