7 Things to Know Before Sending a Business Payment

Sending business payments can feel overwhelming, especially when you’re dealing with multiple transactions, tight deadlines, and sensitive financial information. At Forwardly, we aim to simplify the payment process so you can focus on growing your business with confidence. To help you avoid common pitfalls and streamline your payment workflow, here are 8 essential things to know before sending a business payment.  

Choose the right payment method  

One of the first steps to sending a successful business payment is selecting the right payment method. Different payment methods serve different purposes, and choosing the wrong one can lead to delays or additional fees. 

Same-day ACH 

Same-day ACH offers fast and secure transfers, making it ideal for time-sensitive transactions. With Forwardly, you can initiate payments that are processed and settled on the same day, ensuring your funds reach your vendors quickly. On average, same-day ACH transfers typically cost businesses between $3 to $30 per transaction, depending on the bank and the platform that you are using. But with Forwardly, same-day ACH transfers are free. 

Instant payments  

If you need even faster transfers, instant payments are the way to go. With Forwardly, you can send payments instantly, ensuring your funds are available immediately. This method is ideal for streamlining bill and invoice payments. While Instant payments have a slightly higher fee—around 1% capped at $10 per transaction—the convenience they offer is worth it. 

Credit cards 

Credit Cards provide flexibility while maintaining secure transactions. With Forwardly, paying by credit card is simple, and you have full control over spend limits and transaction visibility. Although credit card fees is 2.99% per transaction, they are a great option for handling business expenses while also earning rewards or cashback. 

With Forwardly, you can choose the payment method that best suits your business needs—whether it’s Same-Day ACH, Instant Payments, or Credit Cards. 

Double-check payment details 

Accuracy is super important when it comes to sending business payments. Even a small mistake, like entering the wrong bank account number, can lead to delays and unnecessary stress. To keep things running smoothly, it’s essential to make sure all payment details are spot on! A typo in a bank account number or routing number can result in the payment being lost, delayed, or sent to the wrong person. This can cause a lot of frustration and require extra time to fix. 

Make sure the vendor’s bank account details, including routing numbers and names, are correct. Regularly update payment systems and bank details to reduce the chance of errors. Also, choose secure payment platforms that offer built-in verification steps to ensure everything is accurate. 

Set up recurring payments 

Setting up recurring payments can make managing regular business expenses much easier. Whether it’s rent, subscriptions, or supplier payments, automating these transactions ensures they’re processed on time without the hassle of manual input. In fact, 95% of companies that fully automate their AP processes experience improved accuracy, efficiency, and overall operations. 

With Forwardly, setting up recurring payments is easy. Forwardly allows you to customize payment limits and approval processes. This gives you control over larger transactions, ensuring they’re managed with the right level of oversight. 

By automating your recurring payments, you’ll save time and ensure a more streamlined process for your ongoing business needs. 

Know payment deadlines 

Meeting payment deadlines is critical for maintaining healthy business relationships and avoiding penalties. Late payments can result in additional fees and strained partnerships, which can negatively impact your bottom line. Whether it’s a recurring subscription or a one-time payment, setting clear due dates helps ensure smooth transactions. 

For example, managing quarterly tax payments requires precise timing to avoid unnecessary fines. Utilizing automated payment reminders can keep you on track and prevent missed deadlines.  

Keep financial records organized 

Keeping your financial records organized is essential for smooth payment management. Whether you’re preparing for audits or filing taxes, having easy access to transaction data makes the process much simpler. Automating your payment processes helps maintain accurate records, reducing the need for manual data entry and ensuring your information stays current. 

For example, when it comes time to generate detailed reports for tax purposes, having all your payment history neatly stored in one place makes the task much easier and more efficient. 

Optimize cash flow

Keeping your cash flow in check is key to your business’s long-term success. By planning your payment schedules thoughtfully, you can align transactions with your available funds and avoid unnecessary financial stress. Smart payment solutions make it even easier by helping you forecast your payment needs, so you always have a clear picture of your finances. 

For instance, scheduling bulk payments in advance ensures your essential expenses are taken care of without disrupting daily operations. It’s a simple yet strategic way to keep your business financially healthy and avoid unexpected hiccups. 

Stay updated with real-time notifications 

Keeping tabs on your payments is a must to avoid mix-ups and keep your cash flow running smoothly. That’s where real-time notifications come in handy. They let you track the status of your payments, so you’re always in the loop. Whether a payment goes through successfully or hits a snag, you’ll get instant updates, giving you the chance to act quickly. 

For example, if a payment fails or is marked as pending, you’ll be notified right away. This gives you the time to resolve any issues before they snowball, making the entire process easier and more efficient. 

Making business payments easy 

Sending business payments is a big part of keeping your finances in check, and it doesn’t have to feel like pulling teeth. With the right approach, it can actually be a smooth and stress-free process. By following these 8 tips—like picking the best payment method, double-checking details, staying secure, and keeping on top of deadlines—you’ll be handling payments like a pro. 

Streamlining your payment process isn’t just good for your sanity; it keeps your business running efficiently and effectively. And if you are tired of complicated payments and expensive payment platform, it’s time to switch to Forwardly and experience fast, secure, and affordable transactions.