Next-Day Funding in Merchant Services – The Advantages of Getting Your Money Faster

Next-Day Funding in Merchant Services – The Advantages of Getting Your Money Faster

Next-day funding is one of the most beneficial services a payment processing partner can offer to your business. The standard funding hold imposed by most merchant services providers can easily eat up two to three days between the time you make a sale and the time that money lands in your bank account. That’s valuable time, and by eliminating it, payment processors that offer next-day funding – like BAMS – make it clear that your company’s financial health is their top priority, even if it means assuming a little more risk on their end. In addition to the reaffirmation of your processing partner’s commitment to your company’s success, next-day funding also offers a number of significant benefits to your business – both tangible and intangible. The following represent just three of those benefits and make it clear why the availability of next-day funding should be an important box to check off whenever you shop for a new merchant services provider. 

Next-Day Funding Advantage #1: Healthier Cash Flow

Whether it’s your payroll, your debt payments, or just a one-time expense, it takes money to make money. Keeping your business running requires you to have consistent access to the cash you need, and any threat to that access represents an existential threat to your business. That means anything you can do to beef up your cash flow statement and ensure the money coming in always covers the money going out is immeasurably beneficial to your company’s overall health. 

Next-day funding provides exactly that kind of boost to your cash flow by minimizing the amount of time that passes between making a sale and having those funds available should you need them. It’s easy to overlook the importance that a matter of a few days can make, but when disaster strikes or a major unexpected expense arises, you might not always have the luxury of waiting two or three days for that big deposit to land. The ability to deal with those kinds of issues right away without having to dip into credit is of crucial importance, and that’s a big part of what faster access to your money can offer. 

Next-Day Funding Advantage #2: Faster Supplier Payments

With your money in your bank account instead of sitting around in your payment processors, you’ll have more flexibility in how quickly you settle up your accounts with your suppliers. That ability to pay faster offers a couple of major benefits. First, most suppliers’ payment terms either charge penalties on late payments or offer significant discounts for early payments. That means paying faster keeps more money in your pocket. Second, fast payment ensures that your suppliers will always be eager to do business with you, and maintaining strong relationships with eager suppliers is the best way to ensure you always receive the best possible service and that your company’s needs are always made a top priority. 

Next-Day Funding Advantage #3: Peace of Mind

More money in the bank represents a safety net. That helps us all sleep better at night in all walks of life, but in the small business world, having that cushion can be the difference between major, gnawing stress, and the ability to relax and breathe easy. Whether it’s real or purely perception, the ability to feel confident in the health of your company’s finances and your ability to access cash quickly when the inevitable time of need comes can’t be overvalued and is key to helping you leave work at work as much as possible in order to maintain a healthy work-life balance.

If you’re ready to start enjoying the many benefits of next-day funding, get started by reaching out to a member of the BAMS team. We’d be happy to provide you with more information on the program, as well as on the many ways our industry-best interchange-plus pricing model can help slash your monthly merchant services statement.