Businesses should be aware of all their funding options, because the faster money is available, the more bang for the buck the business enjoys. Unfortunately, many business owners don’t know about the newer options, so they don’t take advantage of them. However, it’s now possible to choose standard, next day, or the speediest ─ which is Fast Track Funding. Each business has the power to pick the method that optimizes their specific needs and priorities.
Recent Funding Innovations
An easy way to understand the evolution of funding is to compare it to how packages are sent through the postal service. People can choose the slow parcel post method, or get it there within three days using Priority Mail. Those with an urgent need can also upgrade to Express Mail, for delivery within 24 to 48 hours. For many years those speeds were standardized across multiple competing delivery services like UPS and FedEx. But suddenly Amazon started delivering orders the very same day, disrupting the concept of what was possible. Similarly, businesses can now choose between similar schedules for receiving their funds, including NTC’s Fast Track Funding same-day delivery option.
Standard Ways to Move Money
Wire transfers move funds between banks, typically within one business day. But oftentimes the funds aren’t accessible to the customer because they haven’t showed up in the account. They may first have to be manually reviewed by a bank employee. That can significantly slow down the time it takes for a transfer of funds to be available in a merchant’s bank account. ACH transfers are another method used from one bank to another, and are sent in batches. A standard ACH transfer takes two business days to process. Of course, if an ACH is initiated close to days when the bank is closed, like holidays and weekends, getting funds in hand can potentially double the processing time.
There are, however, two other lesser-known ways to accelerate cash flow. Businesses can use expedited next-day funding, which will have the money in the business account after just one business day. That’s twice as fast as ACH. For the fastest service, businesses can now take advantage of Fast Track Funding. It is the newest and speediest way to process a transfer of money from one bank to another and into the bank customer’s account. The funds that are fast-tracked can be delivered, processed, deposited, and ready to spend by the end of the very same business day.
How Fast Track Funding Works
When a merchant submits a batch of authorized transactions, Fast Track Funding automatically accelerates the process. The only days Fast Track Funding isn’t possible are days when banks are closed, such as Sundays and legal holidays. That means that funds for a batch submitted before six in the morning on a business day are guaranteed to settle, ready to access by the merchant or business, by the end of that same day. NTC Fast Track Funding can also process batches of transactions as large as $25,000. That makes it the bullet train of banking, in a fast-paced digital business world where every hour matters.