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Finances and capital are the lifeblood of businesses, enabling them to buy inventory, pay their vendors and partners, and compensate their employees.
In the offline universe, retail stores and businesses would receive cash from sales and instantly have working capital; in the digital payments world, businesses usually receive sales revenue after 2 working days (T+2 settlement cycle).
This 48-hour gap from sale to realisation can put stress upon a business’s liquidity, restricting them from marketing to customers or improving its supply.
Having instant and early access to their revenue can make or break a business. 80% of businesses fail due to a lack of access to capital.
Cashfree is your Instant Settlements Payments Gateway, which ensures that businesses can have a continuous flow of capital for smooth functioning, and invest it into growth.
So, why should merchants and business owners wait for days, when they can avail of daily instant payment settlements?
With Cashfree Payments, get instant settlements of payments into your account from Day 1.
Let’s explain in detail what problems can your business encounter when there are delayed settlements. Also, how Cashfree Payments as Instant Settlements payment gateway offers a one-stop solution to all those problems.
Challenges for Businesses when Payment Settlements get Delayed
We mentioned above how an irregular capital flow can impact your business negatively affecting its efficient functioning. Here’s how-
Unhappy Stakeholders
Your vendors, partners, suppliers and logistics operators are some of the essential stakeholders. Without them, it is hard to imagine how your business can keep running.
When you have instant settlements of your payments, you make timely payments to them. Therefore, they are happy to work with you and support you. But, when you delay it, which is likely due to delayed settlements of your payments, they become less inclined to work with you.
Your bargaining capacity with partners and suppliers also suffers as a result of it.
Inefficient Operations
When you do not have instant payment settlements, your business goes through a liquidity crunch. You may miss/delay paying bills like rent, electricity, internet, infrastructure and other utility bills. Likewise, you can miss or make late bill repayments of business or corporate credit cards.
Defaulting on required payments can result in lower credit scores, extra charges or fines, service discontinuation, etc. All this will take a toll on your business eventually.
Likewise, you may be UNABLE to pay salaries and wages to your employees and workers. Especially, the gig workers like contractual or part-time agents, service providers, delivery guys, etc. DO NOT want to work for you when they get delayed payments.
A business cannot grow if it’s operating inefficiently and thus, instant payment settlements are important!
Stagnation
Other than paying stakeholders or running operations, businesses have multiple needs. Merchants do marketing campaigns like advertisements (online and offline), promotions, events, sponsorships, etc. Also, collaborating with social media influencers is a trend nowadays.
Other than this, your business may require funds for several other business activities and fulfillments. For example, creating a buzz during festivals can lead to a spike in demand.
But, your hands are tied when you have a limited flow of cash (owing to delayed settlements). You become less equipped to carry out all these above-said activities to increase your sales. As a matter of fact, this stagnates your business’s growth.
How can Cashfree Payments help Your Business get Instant Settlements?
Cashfree Payments can help your business get instant settlements of your payments and resolve all the problems of unhappy stakeholders, inefficient operations and stagnated business.
Our Instant Settlements Solution for businesses is meant for unlocking fund flow certainty where you receive your settlements within seconds.
You can opt from our WIDE RANGE of SETTLEMENT OPTIONS and never run out of funds!
Usually, the payment settlement cycle is of T+2 days, and the delay puts stress on working capital. With Cashfree Payments, you can instantly reconcile your payments and receive a steady flow of funds.
How does that help you? Well, here are the reasons-
Unlocking Funds with Instant Settlements Unclocks Value
What we mean when we say unlocking funds unlock value is that the instant payment settlements give stable fund inflow. This boosts the growth and value of your business. You can resolve all the problems we discussed previously.
By accessing early and instant settlements with Cashfree Payments, you can pay all your stakeholders on time. Therefore, maintain a healthy relationship with all your stakeholders.
You will also do timely payments of wages, salaries, incentives and commissions to your permanent, contractual/temporary or part-time employees.
You can also scale up operations when you do not have budget constraints with funds readily available through instant settlements.
While you can effectively manage your daily operations when you have sufficient liquidity, it can also fuel your business growth.
When you have ready-in-hand cash, you can invest to promote brand awareness and customer acquisition through offers and discounts.
No Penalties with Timely Bill Payments
As mentioned earlier, business merchants have to deal with penalties and late fees when they delay the bill, loans and credit payments. But, you can avoid all of this!
With our instant settlement solution, your business will have ready funds for bill repayments, taxes and all other liabilities. Thus, you will not incur any late fees or lower your credit score.
This also improves the chances of getting higher credit lines or additional loan amounts for your business if required.
Grow Your Business with Instant Settlements
Not only can you expand operations or spend on marketing activities, but can also procure adequate inventory when you have a continuous inflow of funds.
This will gear you up to cater to your customers’ demands, especially during busy sales seasons. Whenever you run any festive or seasonal sale on your platform, you can make quick vendor payments and benefit from immediate access to sales collections.
With Cashfree’s instant settlements, you can plan optimum inventory levels without any dependency on external credit.
Smarter Cash Management with Instant Payment Settlements
Overall, you improve your business’s functionality with smarter cash management. Based on your sales and revenue generation, you can make better business strategies and execute them with available funds.
Funds-in-hand empower you to respond faster to business opportunities as well as challenges. You have control over your business’s working capital and you can plan your cash reserves in a better fashion without financial uncertainties.
Customized Solutions & Multiple Settlement Options
We offer tailor-made solutions for different businesses like e-commerce, gaming, NBFCs, ed-tech, utilities, etc.
For instance, an ed-tech can use Instant Settlements to pay commissions to the course instructors and content creators on the same day. This way they can differentiate themselves and build stronger associations and partnerships with leading instructors.
On the other hand, a gaming app can use Instant Settlements to disburse rewards to winners as soon as the game or the content ends. This way they can build their brand by winning customers’ trust.
Other than our tailored solutions, we also have multiple settlement options:
- On-Demand Instant Settlements: With our instant settlement payment gateway, you can withdraw your balance to your bank account whenever you need it, all in a SINGLE CLICK
- Scheduled Instant Settlements: We settle payments MULTIPLE times in a day, within intervals of 15 minutes
- Same Day Settlements: You can get all your settlements from the start of the day around 9 AM to the time when you close your books by 5 PM. Thus, effectively manage your daily operations
You can receive payments either in your bank account or your virtual account as per your choice. You can use your virtual account to receive payments from customers and disburse vendor payouts, customer refunds, loan repayments, etc.
SIMILAR READ: Get Access to your Funds within 15 mins of Payment Capture!
Wrapping Up:
Well, we have listed ample reasons why you need access to a consistent flow of funds. But, you can only have working capital in hand when your payments are duly settled on time without any delay.
So, now say goodbye to cashflow problems with our solution for Instant Settlements – access customer payments in the blink of an eye EVEN on BANK HOLIDAYS.
Our instant settlement payment gateway has already powered many of your peers like IRCTC, Ixigo, Nykaa, RITU KUMAR, Ease My Trip and many more.
So, why wait for days when you can switch to Cashfree Payments for Instant Settlements?
