This blog looks at the benefits of same day ACH for a real estate business.
Efficiency and cost-effectiveness are key drivers of a business’s success. For this reason, many businesses in the US have already turned to ACH transfers. It was formed in 1974 and still remains one of the major B2B transaction methods. According to NACHA, 6.59 billion B2B payments were processed via ACH by the end of 2023. This is an increase of 10.8% compared to last year. The convenience, cost-effectiveness, and security offered by these payments are the major reasons behind this growth.
A large business that uses this payment option on a regular basis is Real Estate. A real estate business using traditional methods may have to face a number of challenges:
- Real estate agents buying and selling properties on a regular basis may have to deal with large funds daily. The traditional method requires dealing with the entire payment process manually. This can delay payment by weeks, leading to unhappy clients.
- While doing everything manually, there are possibilities of errors. Moreover, it increases the workload on your team and slows down payments.
- With traditional cash payment, your team will have to track your clients and pay them. For this, your team may have to spend hours a week which they can otherwise use for completing other important tasks.
The ACH payment option offered by Zil gives real estate businesses the ability to solve all these problems. How? Let us have an idea from this blog, and before that, let us discuss a bit on what these payments are.
What is ACH?
ACH, short for Automated Clearing House, is an electronic fund transfer network run by NACHA. ACH transfers are the transfer of funds via this network from an account at one financial institution to another. According to NACHA, there were 8.3 billion ACH payments in the second quarter of 2024. This indicates an increase of 6.3% when compared to the same period in 2023. Also, the dollar value of the total these payments in the second quarter of 2024 was $21.6, indicating a 7% increase.
Zil is an official member of NACHA, which controls and monitors ACH transfers. So, making these payments via Zil is easy and affordable. Moreover, the platform’s payments are safe and secure. Real estate businesses and any other business can completely rely on Zil to make payments.
Let us now explore how ACH payments via Zil benefit a real estate business.
Same Day ACH
Same-day ACH has reached new heights of payment volume and value. Since its inception in 2016, this method has grown rapidly. Governments, organizations, and individuals are now largely dependent on the speed and convenience of same-day ACH, which has led to its sharp growth. The total same-day ACH payments by the end of 2023 were 853.43 million which was an increase of 22.3% compared to last year. You can make same-day ACH transfers easily and effectively via Zil.
This feature from Zil allows real estate businesses to pay their contractors and suppliers on time. Therefore, it reduces the risk of delays in maintenance or renovation work. Timely payments help to have a good relationship with suppliers and contractors. Real estate business owners may often have to make quick payments, especially when they get deals at the last moment. In these cases, same-day ACH is a practical solution.
Less Work and Fewer Mistakes
ACH payments from Zil can significantly reduce the workload and possible mistakes in the real estate business caused by manual payment processes. It allows for automated recurring payments. That is, once set up, these payments are processed automatically. This reduces manual oversight requirements and frees up time for other tasks.
Since the manual process is completely replaced, there is no chance of any mistakes. Additionally, the platform’s ACH payments are trackable. That is, real estate owners can easily track contractor fees and other expenses. Also, with Zil, financial data can be easily matched with bank statements. That is, the platform reduces the time spent on reconciling accounts and ensures accuracy.
ACH vs Wire
- ACH transactions are used mainly for paying bills, salaries etc. On the other hand, wire transfers are used for making larger business transactions.
- ACH transfers can only be sent within the country, whereas wire can be sent both domestically and internationally.
- Compared to ACH, wire transfer is a little bit expensive.
- Wire transfers have higher limits for transactions than ACH transfers.
You can make both payments with Zil at a reasonable cost. The platform guarantees the security of each of your transactions.
Conclusion
ACH transfers are one of the most preferred payment options in the current business scenario. Most businesses opt for this method to make B2B transactions because of the speed, convenience, and cost efficiency that it offers. Zil makes payments a stress-free task for businesses. It allows businesses to make payments even at the last moment and still be not late. Zil is an effective solution that every business can rely on to deal with its financial operations.
