Understanding Cash Management Services for Business

Understanding Cash Management Services for Business

Importance of Cash Management

There are many parameters on which people evaluate the health of a business. One of the most important parameters is cash. Businesses require cash to manage regular periodic functions that include payment of rent, salaries, utilities and other expenses of daily nature. Businesses follow a cycle of investment, production and sales. Typically, promoters use their own funds or borrow to invest in the business, produce and then earn revenue through sales to recoup their investment. There is a time lag between production and sales during which time businesses need to pay for undertaking daily business functions. Therefore, businesses need cash to pay during this lag period.

Cash management

is a critical component of business operations needing special attention. It is possible that a business can make a profit with poor cash management, but with good cash management, profits could be much more. For instance, if a business is borrowing funds for working capital management, then it is paying interest on the borrowed funds which is a cost to the business. Now, if the business monitors its inventories, accounts payable and accounts receivable properly, then it is likely that it may not need to borrow for working capital thus saving on interest which adds back to profit. Thus, businesses need to bestow more care to their cash management functions.

IDFC FIRST Bank Cash Management Services

IDFC FIRST Bank offers excellent cash management services to ensure that businesses run more efficiently. The bank offers several product solutions that help businesses to manage their cash more efficiently. The product solutions include

• Point of sale solutions
• Receivables management
• Payables management

The many features of each of the product solutions are as follows.

Point of Sale Solutions

IDFC FIRST Bank's point of sale solutions comprises digital solutions that its merchant customers could use to manage their sales efficiently. It consists of various payment methods that the digital world offers. These include

• MPOS - a portable solution that can accept cash, cheque or card payments
• EDC Terminal - accepts Rupay, Maestro, MasterCard and Visa cards globally
• Payment Gateway - mobile optimized for payment options across all devices
• Aadhaar Pay - facilitates cashless purchases through Aadhaar number validated by thumbprint
• UPI - payment acceptance through UPI QR code on BHIM or UPI app

The payment solutions are versatile as they are compatible with most devices either offline or online, these accept multiple format credit and debit cards, prepaid cards and digital wallets. These options allow businesses to ensure utmost satisfaction to customers. They also enable IDFC FIRST Bank and customers to track, store and retrieve any payment record. The solutions use the latest technologies for ensuring the safety and security of transactions guarding against frauds.

Receivables Management

IDFC FIRST Bank’s receivables management feature is progressive and tailored to suit requirements of any business. Businesses can receive payment in multiple formats, all from their place of business without visiting the bank at all. Some of the benefits of the feature include

• Cash transactions - customized multi-location cash pickup solutions, cash counting and verification, documentation of each pickup
• Cheque collections – local and outstation collection, multi-location pickups, documentation of each cheque, timely realization and clearance of cheques
• NACH Debit – using the National Automated Clearing House (NACH) service of NPCI, businesses can handle low-value transactions of large volumes, set up periodic repetitive payments, documentation
• E-collections – a virtual account solution that streamlines and simplifies, seamless integration with business’ ERP system, documentation
• PACE – a secured website for online payments, customized forms, documentation, tracking feature, e-tendering

The many advantages of IDFC FIRST Bank’s receivables management feature include minimizing transaction errors, faster recovery of funds and reduced costs leading to better and quicker utilization of funds.

Payables Management

Payables management is as important as receivables management to ensure smooth functioning of the business. IDFC FIRST Bank offers payables management feature that includes benefits such as

• Cheque printing – both at bank and customer premises, documentation
• Bulk payment – single payment file across payment modes, single debit for payroll, multiple debits for vendors, MIS and documentation, same facility for DD issuance
• Cash delivery – services at the doorstep of businesses, safe and secure delivery to authorized recipients, high frequency of delivery

IDFC FIRST Bank ensures that businesses can manage their payables safely, securely and quickly so that the businesses run smoothly with the support of vendors, employees, business partners and other stakeholders.

IDFC FIRST Bank’s cash management services employ the latest technologies to provide seamless services that encompass all aspects of cash management – physical, paper and virtual. With these services, Businesses can reduce their cash management costs, improve their efficiency, enjoy safety as the bank insures the transactions and concentrate on their core competencies rather than struggling with managing day-to-day financial management.