Four ways same day funding can add flexibility to your business.

You and your trusted staff work extremely hard to run your business and serve your customers in the best way possible. Product development and inventory, marketing campaigns, worksite or plant management, maintaining a dynamic website and social media presence – these are just a few of the tasks that are likely keeping you occupied day in and day out. Wouldn’t it be nice if you could receive the hard-earned dollars from your sales in a timely fashion to maintain cash flow and achieve these goals as effectively as possible? 

The good news is that the financial industry has felt your pain and heard your cries. New to the payments landscape, Next and Same Day Funding options can go a long way toward speeding up the money train that runs from your payment processor to your pockets.

Why are there delays in getting your money from your processing company?

You might be wondering if there is a legitimate reason for the time lag, sometimes lasting several days, between the time a payment is confirmed as legitimate and the moment the profits finally make their way into your merchant account. Is your payment processing company involved in some sort of secret scheme to keep your money? Alternatively, are they just simply incompetent?

It turns out that the answer to both questions is probably “no.” In most cases, payment processing vendors use the time they have your money to double- and triple-check that the transaction in question is not fraudulent. Think about it: They need to make a profit as much as you do. This interval of time provides them with the optimal window for protecting themselves and ensuring the integrity of the payment.

The stakes in this game are high for your payment processor. If they pull the trigger too quickly and move your dollars along the conveyor belt to you before they are as sure as they can be that there will be no negative repercussions, they could be left holding the bag. Translation: They could be held financially eligible and be required to shoulder any costs of a bogus payment.

Legally speaking, the payment card industry has determined that payment processors can take up to 180 days to send your money to you if there is a risk or security issue that they are investigating. Taking preemptive steps such as being careful to process transactions correctly the first time, thoroughly screening for fraudulent payments, and making sure your staff is equally well-trained and vigilant are important precautions that all business owners should implement.

Funding options that can keep your cash flowing.

Of course, it’s always a good idea to take steps to bolster your payment processing and security protocols. However, next and same day funding can also offer several additional benefits to you and the consumers who purchase your products. Before we dive into those, let’s be clear about what next day and same day funding are and how they work.

Next day funding allows your money to be deposited into your merchant account in just one business day. Any transactions that are processed and closed by whatever cut time your payments partner offers will be available on the next business day Monday through Friday. Monies from Saturday or Sunday will be deposited in your account on the next Monday. Many payment processing companies offer this service at no additional cost.

Perhaps you process transactions after the cutoff time but still need to have fast access to your dollars. In that case, reputable payments technology companies also offer same day funding options. As long as you process your transactions by the cutoff time, you will have your cash later that same day.

How same day funding can revolutionize your business.

At last, next and same day funding are available to provide you with more control over what happens to your cash deposits and when. Now that you have this added flexibility, your business can flex its muscles in new ways.

• Fast access to your cash improves the overall health of your business. When cash flow is disrupted due to delayed payments, you have no access to that money. Should an emergency or opportunity arise, you won’t have the ability to leverage the dollars you have rightfully earned in time to take advantage of it. Instead of waiting several days or even weeks for your cash, same day funding gets your income quickly right where it belongs: Into your pocket so that you can use it to grow your business, restock your inventory, amp up your marketing campaign, or pay your staff.
• Bookkeeping and accounting are made exponentially easier. The larger the gap between when you make a sale and when the proceeds from that sale are deposited into your merchant account, the more likely it is for mistakes and omissions to occur. Being able to get at your funds fast eliminates much of these potential errors. Moreover, you and your staff can get a jump on closing outstanding accounts with vendors as soon as possible. Doing so helps to ensure that you continue to have productive relationships with these partners. They might even provide you with an incentive or discount for resolving your account quickly.
• You feel more in control of your own destiny as a merchant. It might seem like a small thing. However, with same day funding, you’ll feel like you’re more in charge of your destiny, instead of relying on your payment processor. After all, you work hard to run your store and serve your customers according to high standards, and it only stands to reason that you will feel better if the power lies, at least to a certain extent, with you. When you are less stressed about cash flow, it will show in how you treat your staff as well as your customers.
• If you’re a software provider, you shouldn’t need to go through the hassle of doing extra development work to offer this feature. That’s because it is automatically offered by any reputable integrated payments partner. 

In short, same day funding has finally arrived, giving you speedy access to funds that you can use to maintain and improve your store.

Are there any drawbacks to faster funding?

You might be thinking that same day funding is too good to be true. Surely, there must be a trap or some sort of catch. Maybe a business owner needs to go through a complex application process, or perhaps it is only available in one or two states.

In fact, there is only one small drawback when it comes to same day funding: There is often a fee associated with it. That being said, many retailers weigh this disadvantage against all of the benefits that having rapid access to their money provides and determine that the fees pay for themselves many times over.

How to get next or same day funding for your business.

If getting your hands on your money faster sounds good to you, it’s time to have a chat with your merchant account provider or payment processing company. Let them know that you have heard that many financial institutions are now giving business owners faster access to their profits, and inquire if they are willing to make these arrangements with you. Most likely, they will be glad to discuss their faster funding options and will get you signed up right away.

If for whatever reason you are not happy with the answer you receive, rest assured that many fine processing companies would be more than happy to do business with you. Just do your homework before making any agreements to ensure that you understand the ramifications of switching providers as well as the nuances of any particular program.

These days, retailers no longer need to be at the mercy of processing companies that take days or even weeks to funnel their hard-earned profits into their business accounts. Finally, next and same day funding options are here to give you ready access to those dollars so that you can pay your staff, market your products, grow your business and, most important of all, provide stellar service to your customers. Whether your business is one tiny shop or a global conglomerate, it will be that consumer-focused approach and flexibility that will keep consumers coming back again and again.