The 6 Benefits of Real-Time Payments for You and Your Clients

Dec 28, 2022 by Brandon Jones

Cash, check, and credit payments are becoming less and less popular every year. Each has its downfalls, including slow processing times and high transaction fees. With the boom in online retail commerce and smart devices, the benefits of real-time payments are proving to be the smarter way forward.

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B2B real-time payments are growing exponentially. It’s estimated that by 2025 as many as half of B2B payments will be done in real-time.

So what’s the big deal? Here are six of the most significant benefits of real-time payments that both B2B service providers and their clients will notice.

Improved Cash Flow

Having a steady stream of cash on hand is crucial for every business. A slow pending transaction ties up your important capital and makes it difficult to get an exact view of your finances. Cash flow keeps your company afloat, and real-time payments help you get your money instantly from clients and customers.

Process Simplification

Not all payment methods are created equal. B2B Payment are annoying, time-intensive, and costly to process. Say goodbye to costly fees and unnecessary paperwork with real-time payments. When the payment is complete, you can focus on more essential aspects of your business.

Improved Cash Positioning

Along with improving your cash flow, real-time payments help improve your business’s cash position. Your cash position says a lot about your company, and it’s generally seen as a powerful signal of financial strength. Cash positioning shows that your company has the capital flexibility to make investments when they arise or protect against losses if they occur. A financially strong company has the cash on hand to cover all pending expenses and liabilities.

Better Liquidity Management

Liquidity management is all about having a plan to meet your short-term cash obligations, meet all liabilities, and cover all expenses. Real-time payments give you efficient liquidity management, ensuring you have the cash to pay your bills when you need to.

If your company is over-leveraged or close to being over-leveraged, having a payment stuck in processing can become more than just a minor annoyance. Real-time payments make it easier to track your money and get it into your bank account before bills are due.

Improved Business Relationships

When a vendor makes a payment, it’s a waiting game to see if the payment clears, especially if mutual trust has not been developed. Real-time payments remove that waiting time and let you know immediately when payments are processed. This efficient process eliminates any doubt you might have while waiting for your business partner’s payment.

Remove Attendant Costs

Business transactions come with attendant costs that lower the value of additional transactions. At Paystand, we process any size payment at any frequency, completely free of additional processing fees. This helps companies make payments as required without the nickel-and-dime fees and without wasting important resources.

The Paystand B2B Solution

Using the Paystand Bank Network, Paystand provides companies with a fast, easy, and cost-effective way to transition their B2B payments to a real-time payment option. Rather than being tied up in processing fees and times, Paystand allows your organization to receive payments instantly, as often as you want, at any volume, and with no additional fees.

Paystand can also help you automate your entire cash cycle because we understand that B2B payments are more than just a single transaction. We have the tools to help you finally digitize your receivables so your entire process can be moved to the cloud. This can help you speed up time-to-cash and decrease DSO by up to 60%.

We’re changing how payments are processed. Check out this AR Automation and give you greater peace of mind.