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Sponsored feature: New INTERAC e-Transfer features, Autodeposit and Request Money, support small businesses in Canada. Here's how they work
Small business owners know how to hustle. From open to close they run shop, man staff and continuously track, analyze and act according to their monthly cash flow. Like a personal chequing account, you want a positive cash flow by having more money coming in than being spent. No small business wants to deal with spending more than they are getting paid.
From craft doughnut shops to boutique pet stores, 36 of Toronto’s prominent small business owners took part in a survey to identify their top cash flow management pain points and what can be done about it.
The top issue reported by small business owners was maintaining an accurate budget. Recording payables/receivables in a timely manner and paying expenses on time in order to avoid fees were close runners up.
The majority of small business owners surveyed currently use some form of accounting software to manage their cash flow, while a smaller majority report using their business bank account.
Their ideal cash flow scenario? Toronto’s small business owners want budget tracking in real-time, easier ways to migrate from paper to digital and a better method for staying on top of billing (i.e. who has and has not paid).
In 2017, one in six Interac e-Transfer transactions were sent by businesses. Originally developed for P2P money movement, small business owners saw the benefits and made the financial tool their own to simplify their business payments.
In order to use Interac e-Transfer all that’s required is access to online or mobile banking through a participating financial institution, and the user can send or request money to anyone with an email address or mobile phone number and a bank account in Canada. Its newest features, Request Money and Autodeposit, are a response to a growing business demand for faster and more convenient ways to manage money.
The Autodeposit feature allows business owners to have money sent via Interac e-Transfer automatically deposited into their bank account, without having to answer a security question. For senders, there is added convenience of not needing to provide security answers while continuing to have the security of knowing who is receiving the funds, prior to sending.
Set-up is simple:
Log in to your financial institution’s online or mobile banking and navigate to Autodeposit, typically found in the Interac e-Transfer settings.
Register your e-mail address and link your account. Any transfers to the registered email address will be automatically deposited into the account.
You will receive an email to confirm your registration. Check your inbox and click “Complete Registration”.
Business owners can now request money owed with the Interac e-Transfer Request Money feature. When a request for money is sent, the recipient is notified instantly and can accept the request. If accepted, the requested amount will be automatically deposited into the sender’s bank account. No more chasing down late payments!
Here’s how to do it:
Log in to your financial institution’s online banking or mobile banking and navigate to Interac e-Transfer Request Money.
Add or select a contact and fill out the name and e-mail address or mobile phone number of the person you wish to send the request to.
Type in the specified amount you are requesting and select the account you would like the funds to be deposited into. You can also include a personalized message with the request.
Once the recipient has fulfilled your request, funds will immediately be deposited into your bank account and you will be notified immediately.
Interac e-Transfer Request Money and Autodeposit features create more certainty for entrepreneurs managing their cash flows in an uncertain world. Avoiding money management pitfalls – bounced cheques, late payments – allows local business owners to focus on what they do best. Toronto needs its craft doughnuts after all.