When a business is growing, it needs access to cash fast. Otherwise, plans will be stalled and it will hinder the business’ success. With next day funding, fortunately, enterprise businesses can get their cash quickly and be rest assured that they can continue on with their expansion.
If you’re running a growing business and looking for a payment processor to partner with, make sure they offer next day funding so you aren’t caught in a bind.
The Time Frame for a Standard Payment Cycle
Here’s how the payment processing cycle usually goes: A business owner receives a payment. At the end of the day, they will do payment batching and send it to the bank.The bank will process the transactions and then deposit it into the business owners’ account. Funds are then held anywhere between three to five business days before they become available for use, and there could be delays due to holidays and weekends. Banks do this to help minimize risk due to fraud. This is called risk mitigation.
Waiting up to three business days for payments can prove to be detrimental to a scaling business.
What Is Next Day Funding?
Next Day Funding is exactly what it sounds like. Based on the cutoff time set by the payment processing company, businesses are given access to their funds within a single business day. This allows you to use funds right away for an endless list of financial responsibilities that go into running a business.
Some payment processors will even offer Same Day Funding for a fee. This is a brand new technology that allows you to receive your deposits within just a few hours of batching out. For example, if you batch by 10 a.m. EST, you could receive your money by 12:30 p.m. to 2 p.m. This could remove roadblocks that are getting in the way of your progress and make all the difference in the world for your business.Learn More
Why Next Day Funding Is Critical for Growing Businesses
Expanding businesses need to be able to have quick access to their funds to pay for employees, job materials, restocking inventory, insurance, and much more. You can’t afford to wait around for the money to come in because this could end up hurting your business, especially with growing expenses. You need to know that it’s going to be in your account at a certain time and can rely on it to cover business expenses.
If you have a long waiting cycle and your funds are not in your bank at the right time, you risk not being able to pay for your business’ needs. This could create problems and stall your progress, which is something you want to avoid at all costs.
The Pros of Next Day Funding
The biggest pro of next day funding is that you can receive your deposits a lot quicker than you would with a standard payments processing time. This means you will have quicker access to cash flow, which is especially important if you operate a weekend business or one that operates on holidays and can’t wait up to three business days.
Maximizing cash flow is an essential aspect for running an established business. With more control of your money, you will have a better handle on your business affairs. You can have the ability to accurately budget for new projects, scheduled updates, or add more operational enhancements. Having quick access to funds will help with knowing how much you can allocate outside of just the day-to-day support expansion.
Not to mention, you’ll be able to pay your vendors on time, ensuring that you maintain strong relationships with them and preserve your reputation in the industry.
The Cons of Next Day Funding
One of the cons of Next Day Funding is that it is not as fast as same day funding. However, same day funding may not be available to you. If it is available, you might need to pay an extra service fee from the payment processing company. Many businesses find that it’s worth it in the end to have even quicker access to hard earned funds.
Additionally, another downside of Next day funding is that the quicker release of funds negates some of the risk mitigation benefits when your funds are being held. Because of the higher risk, payment companies commonly charge a fee.
Stax’s Next Day and Same Day Funding
Whether you need Next Day or Same Day Funding, Stax has you covered.
With Stax’s Same Day/Next Day Funding, which is supported by industry-leading technology and the highest level of security, you can:
Gain access to funds from high volume weekends and invoice payments by the next day (or the same day with Same Day Funding)
Support same day funding regardless of how you get paid (in person or online), including on holidays and weekends
Have added flexibility when it comes to getting paid with the option to choose your funding times on Same Day Funding. Same Day Funding with Stax guarantees you receive your hard-earned dollars within 24 hours.
Plus, with Stax Analytics, you can use a one-stop shop platform that includes all of the transactional reports that are critical to running your business. You can reconcile your transactions daily or as often as you accept payments in a given week.
If you are interested in Next Day or Same Day Funding with Stax, get in touch today.