Payments held up because of bank holidays? Don’t let that stop your business. In this blog, we’ll help you understand how you can manage cash flow even during bank holidays.
Recently, an article published on NDTV profit stated that over four unions of public sector bank officers threatened to go on a strike, opposing the merger of 10 state-run banks and lenders into 4.
The strike is set for 2 days (Sept 25th – Sept 27th), in light of the Finance minister’s decision to merge public sector banks into 12, from the current 27.
How will bank strikes affect small business payments?
When banks go on strike, payment settlements are halted temporarily. A bank strike will delay timely payments and can cause working capital shortages.
Some working capital problems are:
- You cannot operate day-to-day activities with the lack of working capital.
- Your company loses out on market opportunities such as cash discounts and bulk lower prices on products.
- Your company could lose out on its creditworthiness as you will be unable to pay off your obligations when they have matured.
- You will lose out on investment and expansion opportunities due to insufficient working capital.
- Your business will not be able to utilize fixed assets and your assets will be depreciated in value, which will later lead to increased costs.
Instamojo payouts to manage cash flow during bank holidays:
In lieu of unpredictable situations like bank strikes and holidays, we came up with a solution to address our merchant concerns; the Instant payouts feature. We developed this feature to facilitate quicker, easier payouts for small businesses to manage cash flow. With this, you can receive payments into your bank account instantly for an additional fee of 1%.
Instant Payouts is now on the Android App too.
Instant Payouts helps businesses transact payments received on Instamojo within minutes. Just select the payments you have received and get the money in your bank account.
The prime feature of this top-performing product is to always provide businesses with a seamless experience to get payments instantly. You can get Instant Payouts of up to INR 2,00,000*.
Read: How to set up Instant Payouts?
How will Instant Payouts help Manage Cash Flow?
Payment gateways have partnerships with banks. They have nodal accounts that collect money and payout sellers/merchants according to seller settlement timings. With Instant payouts, your business cash flow is secure as there is money when you need it.
Account for unexpected expenses:
When you run a business, you need to take care of expenses that might come in at the last minute. Therefore, with Instant Payouts, you can manage these expenses easily once the customer makes a payment. The money is credited to your bank account immediately and you don’t face a shortage of funds.
Pay vendors on time:
You receive money quickly, you pay your vendors quickly. This helps you maintain a strong relationship with your vendors and builds trust for any future transactions.
Positive cash flow for business:
Maintaining a steady cash flow for your small business is important to run daily operations with ease. Instant payouts get you your money in real-time and take care of your working capital requirements.
Keep your business afloat in times of uncertainty, with the right tools and features. We ensure quick, easy and fast payment processing for your daily business needs.
All you need to do is sign up!
*You can receive payments up to INR 10 Lakh. Instant payout can be availed by all KYC-compliant merchants.