Here’s how a comprehensive payout solution can help businesses streamline their cash flow and optimise finances.
According to a survey conducted by the All India Manufacturers Organisation (AIMO), around 66% of the entrepreneurs mentioned cash flow management as a major challenge faced by them during the lockdown period, due to which they were unable to make wage payments. Now, the MSME sector, no doubt, depends on continuous cash flows, which gets impacted due to late receipts and other circumstances. The recent pandemic has been a learning lesson, proving that it is pivotal to have cash flow reserves for a rainy day and put in place an effective financial management system.
Why the modern day business needs a modern payment mechanism
Small and medium businesses usually face challenges in managing sufficient, which often is a result of late payments and untimely receivables, primarily because of the adoption of a traditional payment system. Late payments not only hurt the brand, but also results in mismanaged funds and creates issues such as untimely payment of wages, refunds, and a compromised relationship with customers.
In the era of fintech models, it is necessary that business sector embraces the change and adopts an effective payment mechanism to simplify day to day financial operations for themselves as well as for their vendors and clients.
What is Automated Payout and how can it help the MSME business
Digital payments can help automate payments and offer countless benefits over traditional payment modes. Imagine how troublesome it would be to wait for a payment to be carried out through a cheque deposit, considering the time involved in collecting and processing it. Instead, if one opts for an instant payment gateway, debit or credit can be carried out within seconds. Payment channels such as InstantPay can enable a business to manage cash efficiently while tracking the inflow and outflow.
Benefits of opting for Automated Payouts
Enable Instant Payments
When one pays or receives the money within a fraction of a time, imagine the time saved in manually doing everything! With InstantPay’s seamless payment platform, it is possible to collect money through multiple collection modes. Additionally, a business can annex invoices and even carry out transactions through email, WhatsApp and SMS links.
Use a single dashboard to manage and track fund movement
An automated payment platform will help businesses get a bird’s eye view of the flow of funds and identify areas that need improvement, like a customer who has been delaying payment or a vendor who is not getting paid at regular intervals.
Timely repayment of refunds will help build customer loyalty and increase the trust association with customers. When a customer returns an item, the waiting time for a refund often irks them, discouraging them from making a repeat purchase. On the other hand, if businesses have a dedicated payment portal, customers can easily get themselves registered and enter their account details, which saves customer service time, otherwise spent on verifying these details. Ecommerce brands can easily process instant refunds to their customers.
Focus on business
Once payouts and collection are managed, businesses can focus on their core competency and increase the revenue and be rest assured about rolling out payments on time. With InstantPay’s gateway, they can send payment reminders to customers and get real-time notifications about collections. Additionally, even when a business grows and scalability increases, the payout mechanism allows it to process over a million payments in a day.
Build a better image among customers
With scheduled payments, timely reminders and lesser complications involved in financial transactions, it is possible for a business to promote itself as a trusted and transparent partner for other businesses and even end-users. Any roadblocks delaying the payment can be addressed or intimated to the client at the right time, facilitating an enhanced relationship with customers and vendors.
To conclude, desperate times call for smart measures. With a little bit of planning, MSMEs can plan their funds and ensure timely payments and collections. Adoption of an automated payout mechanism for aiding management of business funds, especially, when businesses are struggling to get back on their feet, can certainly prove to be a wise decision.
Fueling creativity one sip at a time with the perfect cup of tea! As a content specialist at Instantpay, he’s passionate about weaving words that resonate. Apart from crafting content, you'll find him nestled in nature, finding inspiration in every leaf and breeze.