Businesses waiting to get paid can face significant financial struggles, but immediate payment methods have helped cut out delays that saw firms waiting for checks in the mail or for funds to settle into bank accounts.
Push payments sent over immediate transfer systems like the The Clearing House (TCH)’s Real-Time Payments (RTP) network can streamline these exchanges, and firms that have relied on pull payments also want access to such speeds and convenience.
Features that enable request-for-payment (RfP) messages to be sent over immediate payment networks can help fight this problem by allowing sellers to instantly reach out to their clients with billing information and prompt them to send back funds over the real-time payments systems. The transfers are also accompanied by plenty of data about the transaction, helping sellers quickly reconcile them. The February Real-Time Payments Tracker® dives into the matter and examines how RfP features are helping businesses and freelancers get paid on time and protect their cash flows.
Deep Dive: How Real-Time Request-For-Payment Capabilities Fight Late Compensation
Small vendors and freelancers suffer especially when clients pay late. Encouraging their customers to adopt quicker payment methods could help reduce those problems, however, because real-time payments deliver money immediately into recipients’ accounts. Gig workers and small businesses that send RfPs over these immediate transaction systems can help encourage their customers to use the same systems for delivering back funds.
The Deep Dive examines the late payments problem and the potential for RfP to help small players get paid on time.