Organisations must continuously work to improve efficiency in all areas of their businesses if they want to remain competitive in the market. One of the ways to help improve efficiencies across all areas of your business is making sure the company can make fast and reliable same day payments. Making same day payments can impact many areas of your business in a positive way by strengthening relationships with your clients, vendors, suppliers and employees.
One of the areas that same day payments will help your business is with your supplier relationships. This is critical especially when the order amount you need from a vendor can vary on a daily or weekly basis. Knowing you can pay your supplier on the same day gives you the flexibility to make last-minute changes to your orders and the providers will have the confidence that they will receive the payment the same day and fulfill the order on time.
Also, you may find yourself in a position where you urgently need an order from a vendor that you do not have a pre-existing relationship with. In this case, the vendor will most likely require payment before confirming the order. With same day payment capabilities, you can send the payment and not have to worry about delays. In this day and age, a business must ensure there are no delays in order to retain loyal customers.
The ability to make same-day payments will also greatly benefit your customers in a direct way. With any business, there will be clients who are dissatisfied with the product or service. When this is the case, it is critical that a company is capable of returning the funds promptly to the customer to avoid an adverse impact on the business. When a client is dissatisfied with a business, the faster the business can rectify the situation, the more likely that customer is going to be willing to give the company a second shot or recommend the business to another party.
Any delay in payment can also often lead to a negative impact on the firm’s reputation. Any delay gives unhappy customers the opportunity to put up a negative online review on Yelp or other social media platforms. Once a negative review is posted, it can be impossible to have it removed even if you can resolve the situation with the customer.
When a business makes payments on the same day, they gain better control over the cash flow. When bills are paid right away, businesses have a much better understanding about exactly how much cash the company has on hand. This allows more informed decisions on which areas additional capital can be spent or how much excess funds are available to put away for future projects that the company is planning.
Furthermore, paying bills on the same day means that all departments that are responsible for tracking expenses can report on progress or potential issues on a more timely basis. For example, if you are paying a bill on a net 30 basis, your accounting department may not be able to spot an overspending area for over 30 days. On a net 30 basis, there may be additional bills already due once the problem is noticed. When bills are paid promptly, issues are brought to the surface quickly, and problems can be addressed, saving the organisation time and money.
When an organisation can correct payroll issues on the same day basis, you will have a happy workforce. Many companies have systems set up where if a change needs to be made to payroll it can only be done on a bi-weekly basis. However, when a company can correct any payroll issues with a one-time same day payment, you will increase the employee’s moral. Also when you are hiring people, and they start employment on an “off-payroll” week, you do not have to wait three weeks to pay the new employee.
Instead, you can pay them a one-time payment for the first week and then roll them into the regular payroll schedule. Same day payment systems also give businesses the ability to pay top performing employees bonuses and pay incentives as rewards for great results.
