Receivables Solutions
Streamlined cash management starts with efficient processing of business receivables.
Commercial banks offer multiple solutions to help businesses efficiently collect funds from customers and streamline their cash
flow. Here are three key options:
Remote Deposit Capture (RDC) and Mobile Remote Deposit Capture: Businesses can deposit checks electronically using a check
scanner or mobile app provided by the bank. This eliminates the need to mail checks for BHI to deposit, accelerates funds
availability, and reduces the risk of lost or stolen checks. RDC is ideal for businesses that want a faster, more convenient way to
deposit funds.
Lockbox Services: Instead of receiving payments directly, businesses can have their customers send checks to a designated lockbox
managed by the bank. The bank collects and processes these payments, deposits funds into the business’s account, and provides
reporting. This service enhances cash flow by expediting deposits, reduces manual processing, and improves reconciliation, making
it a popular choice for businesses with frequent customer payments.
ACH Debit Origination: Businesses can initiate Automated Clearing House (ACH) debits to collect payments directly from customer
bank accounts. This is a secure and cost-effective way to receive funds without relying on checks or manual processing. ACH debits
are commonly used for recurring payments like subscriptions, loan repayments, and utility bills, providing businesses with
predictable cash flow and reducing delays associated with paper checks.
Each solution offers advantages depending on a business’s collection needs, check volume, and customer payment behaviors. Many
businesses use a combination of these services to optimize their financial operations.
Mobile Remote Deposit Capture (RDC) is a BHI service that allows our business clients to deposit checks electronically using a mobile device or scanner. Instead of visiting a BHI physical bank, business clients can capture digital images of checks and transmit them securely to BHI for processing.
Benefits to Business Clients
-
Convenience: Business clients can deposit checks anytime and anywhere, eliminating the need for trips to a BHI physical branch.
-
Speed: Deposits are processed quickly, often making funds available sooner, which improves cash flow.
-
Efficiency: Streamlines the deposit process, saving time and reducing administrative effort.
-
Reduced Risk: Reduces the chances of losing or misplacing physical checks, as digital records are securely stored.
-
Cost Savings: Reduces transportation costs and time spent away from core business activities.
This service is particularly beneficial for BHI business clients that need the efficiency of depositing checks on-site.
-
Converting paper transactions to electronic funds positively impacts your cash flow and gives you the ability to monitor your cash position in real-time. ACH Collections increases speed of collections, improves transaction accuracy, reduces fraud, and makes it easier for your customers, too.
ACH Debit Origination refers to the process where a business initiates an electronic withdrawal from a customer's bank account through the Automated Clearing House (ACH) network. Essentially, the business client sends a request to the customer's bank to deduct funds directly, based on prior authorization.
BHI’s ACH Debit Origination enables enrolled business clients to initiate an electronic withdrawal from a customer's bank account through the Automated Clearing House (ACH) network. Essentially, the business client sends a request to a customer's bank to deduct funds directly, based on prior authorization.
Why is it useful for business clients?-
Reliable Payments: Business clients can schedule recurring debits for subscriptions, loan payments, or invoices, ensuring consistent cash flow.
-
Cost-Effective: ACH transactions are typically cheaper than credit card payments and wire transfers.
-
Reduced Processing Time: Funds move quickly, allowing business clients to receive payments faster compared to checks.
-
Lower Risk of Fraud: ACH transactions have built-in security features to help minimize unauthorized withdrawals.
-
Convenient for Customers: Business clients don’t need to manually initiate payments—once authorized, the process is automated.
Many business clients prefer ACH Debit Origination because it simplifies payment collection, improves financial predictability, and enhances efficiency.
-
For companies with lots of customers who pay throughout the month, lockbox services are the convenient and preferred collections method. Payments made by customers are directed to a special post office box rather than to your company. Our processing centers accept remittances, produce digital copies and funds are transmitted directly to your account. The benefits are clear: accurate, same day digital processing of every check, online reporting, no need to retrieve mail or manual data entry. Saves time, money and is more secure, too.
Receiving payments from outside the United States isn’t always so easy. Payments need to be processed, converted and deposited into your U.S. bank account. With Check Collections, Canadian bank issued funds received from a correspondent bank can be converted to U.S. Dollars, or credited to your account in the same currency as the check.