Payroll Outsourcing

Why and how to draft payments from your customers and improve cash flow?

Draft payment is auto payment from the customer’s bank account to your bank account. It is a kind of auto payment. In this case, if the draft issuing bank guarantees an automated draft payment, the payment of the amount and the payment clearance of such drafts is cleared by the automatic clearing house, which is also known as ACH.

cash flow


It is essential to move the business to auto-draft billing and collection of payments from the customer’s bank. It makes it very easy for the company and for the customers and the payments are secured with the draft issuing banks. 

The cash flow in the auto-draft payment system is immediate, and therefore it saves a lot of time and effort, and the payments are the direct link from the issuing bank through customer accounts and not from credit agencies or payment cards. Moreover, since the price in the auto draft is from the bank to the bank, therefore it is an excellent way to eliminate the fraud which is caused due to use of other forms of payments like debit cards or credit cards, or internet banking. 

Another reason why ACH is a better option is that they function at a meagre cost to the customer as well as the business, and therefore it is highly recommended for both of them to avoid unnecessary high transaction costs. And your flow of cash is automatically improved when there is automatic payment activated, which is healthy for the company’s financial soundness.


  1. Healthy cash flow:-

With auto-draft payments, there is a regular and continuous flow of income, and therefore the cash management can be done, and the financial decisions can be taken appropriately. 

It is essential as the payment is directly from the customer’s bank account and not from any credit card.


  1. Convenience of payment:-

Autopay options have a win-win situation for the company as well as for the customers as the customers need not do anything additional, and the payment is automatically debited from their account, which makes it very easy for them to make payment and avoid any delays or excuses. 


  1. Paperless transfer:-

Another benefit is that the transaction and transfers are paperless, which helps in fewer human errors and increases productivity, efficiency, and flexibility. It also helps in saving the environment by not using paper and going eco-friendly. 


  1. Competition:- 

There is more convenience to the customers and therefore, it is less competitive to the business from the new and upcoming small and start-up companies which run through the traditional form of payments. 


  1. Minimal bad debts:-

One of the best parts about auto-draft payments is that they are directly debited by the issuing bank from the customer’s account. Therefore, the payment is cleared, and there is not much scope of bad debts of payments or any kind of delays by the customers for any reasons or Lane excuses.