Manufacturing companies transform raw materials into finished goods using machinery. Everything is processed by manufacturing companies, from electronic devices to clothes. To make these products, they have to buy raw materials and essential equipment from various vendors and suppliers. If you own a manufacturing firm, you will know how crucial it is to make vendor payments on time. Whether you own a small or large manufacturing company, making vendor payments via direct deposit is an efficient option to consider. You can set up direct deposit on the cloud-based platform for easy vendor payments.
What is a Direct Deposit?
Direct deposit is an electronic transfer that sends money directly from one financial account to another. The secure ACH network is used for transferring funds in direct deposit. When the payer issues payments via the ACH network, it will be batched together and processed automatically. These funds will be available in the payee’s account within a few business days. Businesses can use direct deposit to pay their vendors as well as employees conveniently.
Why Do Manufacturing Companies Need to Set Up Direct Deposit?
Manufacturing companies have to make payments to various entities to run their business smoothly.
- Vendors and Suppliers: Manufacturers have to pay their vendors and suppliers for different purposes. This can include supplying raw materials, machinery, equipment, etc., for production processes and maintenance.
- Employees: Manufacturers have to pay their employees like factory workers, engineers, and administrative staff to run company operations smoothly.
- Transportation Providers: Transporting the raw materials to the factory or delivering the finished goods to wholesalers or distributors is a crucial task for manufacturers. In order to run transportation smoothly, they have to pay shipping companies on time.
- Maintenance and Repair Providers: Payments to maintenance and repair services are crucial for manufacturing companies. This is because some manufacturing equipment might need maintenance and repair on a regular basis.
Paying all these stakeholders using the traditional methods might delay their payments, affecting your business operations. Therefore, you can set up direct deposits using Zil.US for quick payments. To start an ACH payment, complete the one-time account setup on the platform and verify your business checking account. Once verified, you can conveniently send ACH transfers with a few clicks. You can make ACH payments from anywhere at any time using computers, smartphones, or tablets. Send one-time and recurring ACH payments to your stakeholders using the cloud-based platform.
Same-Day ACH for Urgent Transactions
When handling multiple vendors and supplier payments, you might miss out on one or two payments in your busy schedule. Then, you have to send these payments at once to maintain a good relationship with them. However, paying using traditional payment methods can further delay vendor payments.
In these situations, the best option to consider for making vendor payments is the same-day ACH feature from Zil.US. The same-day ACH was launched by NACHA in 2016 for processing and settling funds within the same business day. This feature is a savior for businesses when you need to make urgent transactions. With the platform, you can make same-day ACH payments, and your recipient might receive the funds usually the next business day. In this way, the platform helps you reduce the risks associated with late payments.
Collect Payments from Clients Using ACH Transfers
As a manufacturing company, you will be selling your finished products to wholesalers or retailers. When selling your products, you should use a reliable method to collect payments. If the payment method is slow, it can certainly affect your company’s cash flow, leading to financial instability. Therefore, use the ACH feature from Zil.US to collect payments from your clients. This is an efficient way to collect payments on time.
Easily Open an Online Business Checking Account
Zil.US offers online business checking accounts for businesses. For creating a checking account on the platform, there is no monthly maintenance fee and minimum balance needs. You can start an account with zero minimum deposit. Therefore, these accounts are fee-free checking accounts. For various business needs, you can create multiple checking accounts on the platform. A manufacturing company can have separate checking accounts for making and collecting payments. This way, payment calculations can be made easier. Using your business checking account on the platform, you can easily send ACH, wire transfers, virtual cards, and check mail.
As ACH payments were discussed earlier, let us look at the other payment methods.
Wire Transfers:
Manufacturing companies deal with large volumes of transactions for paying vendors, suppliers, and shipping companies both internationally and domestically. Using traditional methods for these transactions can further delay their payments. Therefore, use the wire transfers from Zil.US for quick large transactions online. For making international wire transfers, you will need specific codes like SWIFT or IBAN. However, for domestic transfers, you will need routing and account numbers. With the platform, you can make both domestic and international transfers.
Virtual Cards:
To manage business expenses, you can use virtual cards from the cloud-based platform. You may create multiple virtual cards using a single account and provide these cards to your employees for different purposes. With the platform, you can set a spending limit for each card. This can help you in controlling expenses efficiently and reduce overspending. You can add funds or even cancel the card anytime with a few clicks on the platform.
The Conclusion
Manufacturing companies can easily set up direct deposits using Zil.US to make efficient payments to their vendors, suppliers, and employees. You can pay as well as get paid via ACH transfers on the platform. You may also open an online business checking account on the platform to initiate ACH payments. Other than ACH payments, the platform also offers wire transfers, virtual cards, and mail checks.
