This blog deals with the features of ACH transfer and how it helps a leasing company.

Leasing companies, whether in real estate, equipment, or auto, are constantly juggling a range of payment challenges. These challenges are silently reducing the profit margins and hindering the company’s growth. From late payments and manual processes to costly transactions, these challenges are many, especially for companies managing multiple leases.

But what if there is a fast, automated, low-cost solution?

Yes, you heard right—there is! ACH Transfers.

ACH transfers are now the lifeblood of modern business transactions. In 2023, the ACH network processed 31.5 billion payments valued at $80.1 trillion safely and securely. The total B2B transactions processed was 6.6 billion, which is a 10.8% increase compared to the previous year.

Now, let’s see what are the features of ACH transfers that can help a leasing company.

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Expand Your Leasing Business with Same Day ACH

You can easily make same-day ACH with Zil.US. For this, all you need to do is take a subscription to the cloud-based platform. Same-day ACH from the platform makes sure that all your bills are paid on time and helps you eliminate penalties associated with late payments.

This is the major reason why the total same-day ACH payments across the US are growing day by day. The total volume of same-day ACH in the third quarter of 2024 has increased by 67.5% compared to the previous year. There were 355.2 million same-day ACH transfers in the third quarter of 2024. The total value of these many transactions was $844 billion, an increase of 38.8% compared to the same period last year.

Same-day ACH allows leasing companies to make payments within the same business day. It offers a quick and reliable method to ensure funds are transferred immediately without disrupting the business.

ACH: A Low-Cost Solution for Your Leasing Business

Zil.US is an official member of NACHA, which is the regulating body that controls and monitors the ACH network. The ACH transfers are processed via this ACH network. So, making ACH payments via the cloud-based platform is easy and affordable.

ACH offers low transaction fees compared to other traditional payment solutions. It not only reduces costs for high-value transactions but also eliminates the additional costs associated with administrative handling. Moreover, by automating payment processes through ACH, businesses can reduce labor costs tied to manual processing.

Two Types of ACH Transactions: Debit and Credit

ACH transactions are of two main types, which are ACH debit and ACH credit. You can make both ACH debit and ACH credit using Zil.US.

• ACH debits are transactions that involve pulling funds from the customer’s bank account. This method is commonly used for making recurring payments. For instance, a leasing company can use ACH debit to pull money from real estate developers and property managers who lease commercial spaces, office buildings, and residential properties.

• When a business initiates an ACH debit, it requests the customer’s bank to transfer funds directly from the customer’s account to the business’ account. This way, businesses can ensure timely collection of dues without requiring customers to manually make each payment.

• ACH credits are transactions that involve pushing funds into a recipient’s bank account. This method is commonly used for payroll deposits, vendor payments, and refunds. A leasing company can ensure that all their employees are paid on time using ACH credit. Moreover, they can easily pay their vendors, such as maintenance providers, contractors, and service suppliers, with ACH credit.

• When a business makes an ACH credit transaction, it instructs its bank to send money to the recipient’s bank account, effectively transferring funds directly. This way, employers can simplify the payroll process by depositing employees’ wages electronically.

Now let’s see what are the other payment options offered by Zil.US.

Other Payment Options

Zil.US offers multiple other payment options in addition to ACH. This helps leasing companies to cater to the preferences of diverse clients. This flexibility can enhance customer satisfaction by making it easier for tenants and lessees to make payments in a method that suits them the best.

• Wire Transfers: You can make both domestic as well as international wire transfers easily with Zil.US. Wire transfer is yet another growing B2B payment method. The total wire transfers originated in the month of September 2024 alone were more than 17 million.

• Virtual Card: These are digital forms of physical cards that hold the same value. You can easily make payments via virtual cards. For this all you have to do is take a subscription to the platform and fill your wallet. You can make payments until the wallet balance is zero, and once the wallet is empty, you can easily recharge it.

• Check by Mail: With Zil.US, you can easily send your checks via mail. You don’t have to worry about printing, labeling, enveloping, and mailing checks manually. The platform will do all these processes on your behalf and send them via USPS/FedEx at an affordable cost.

Conclusion

Leasing companies can significantly benefit from using Zil.US. The platform offers ACH transfer, which is a convenient and effective solution to make payments. They are the most ideal for making recurring payments at an affordable cost. The platform also offers other payment options, such as wire, virtual cards, and checks by mail, which further help a leasing company.