Overview
Prime Goods is a mid-sized US B2B wholesale supplies store in Houston, Texas. The business distributes major convenience stores, supermarkets, and household merchants with packaged goods and essentials.
With 100+ recurring vendor partners and clients, Prime Goods processes multiple vendor payments daily. The average daily incoming cash flow is above $10000 USD.
Despite the strong vendor relationships and profitable revenue generation, Prime Goods was experiencing an issue with its vendor payments.
Invoice payments were being transferred with ACH rail and traditional bank transactions. It took 2 – 3 business days to settle the inflowing funds. Lack of access to funds in real time caused harm due to uncertain cash flow.
This delayed cash flow gave rise to the business operations of Prime Goods. Restocking supplies and paying suppliers became a hassle due to the unavailability of funds in real time.
This is where Paywint stepped up to help Prime Goods with the Real Time Payments (RTP) product.
The Challenge: Delayed Vendor Payment Settlements
Timely vendor payments were a necessity for Prime Goods to get access to active inventory control. This would have helped maintain the inventory cycle with a dynamic process. 4/5th of the company’s vendor payments happened through ACH, owing to reliability. However, the consequent time delays added to the working capital burden of the business.
As per the company’s sales manager, Mark Daniel, “Our vendor partners paid us promptly. However, choosing ACH caused us to wait days to reflect the funds in our account. On the other hand, we had to clear supplier invoices. This caused pressure on our financial management and affected the whole business. It was frustrating.”
Prime Goods had a genuine payout settlement issue on its hands.
The Impact of Delayed Vendor Payments
- Supplier purchases had to be postponed.
- It was hard for the company to forecast cash flow.
- Rise in administrative workload to track payments.
- Disrupted the financial planning related to payroll processing and other tasks.
- Use of emergency credit affected the store management.
- Lack of clarity regarding stock evaluation and restocking.
The Solution: Instant Access to Funds in Real Time with Paywint
Paywint RTP integrations helped the business model evolve in the financial transactions category related to vendor payments at Prime Goods. The wholesale store now:
- Receives instant vendor payments within minutes – even on weekends.
- Removes time delays related to ACH transactions.
- Accesses fund clearance in real time to boost the cash flow.
- Gets better visibility on the store’s money movement.
- Maintains the emergency credit and business operations in line.
- Manages the stock evaluation and supplier payouts without hurdles.
RTP rail integration facilitated direct account-to-account transfer, ensuring immediate fund availability and mobility for Prime Goods.
Implementation Timeline
Phase 1:
RTP activation by integrating with the payment workflow.
This is the part where banking configuration, vendor onboarding, and invoice setup happen.
Phase 2:
Deployment of the dashboard and automated reporting.
Paywint worked with the members of Prime Goods in finance and operations to ensure optimum training support. It helped them seamlessly migrate from ACH to RTP with no onboarding issues.
The Results: Instant Access to Vendor Money
- Access to funds from vendor payments within minutes
- 90% reduction in settlement delays
- 60% improvement in processing supplier orders
- Saving of 12 – 15 hours per week in payment documentation
After Paywint: Instant vendor payments in real-time via RTP
Again, in Daniel’s words,
“The freedom we experience with our cash flow is amazing. Paywint RTP allowed us to experience the happiness and productivity associated with instant payments. We can easily handle our vendor and supplier payments simultaneously in real-time.”
Key Takeaways
Implementing Paywint RTP allowed Prime Goods to get instant funds in their account. They could access the money in real-time, and it can be converted to supplier payouts and working capital for the business with ease.
Business Benefits:
- Better control of cash flow
- Real-time visibility on vendor payments
- Easier management of workflow
- Quality access to supplier payouts
- Boost in vendor and supplier relationships
- Optimized use of administration tasks and credit storage
Ready to Embrace RTP for US Businesses with Paywint?
Paywint RTP allows businesses in the USA to deal with cash flow in real time and get instant access to funds.
Frequently Asked Questions
What is the difference between ACH and RTP?
ACH (Automated Clearing House) processes bank payments in batches, typically settling in 1–3 business days. RTP, from The Clearing House (TCH), enables instant money transfers, settling in seconds, 24/7/365.
How fast are real-time payments in the USA?
Real-time payments (RTP and FedNow) in the USA settle in seconds, typically within 5–20 seconds. Funds are available immediately to the recipient, 24/7/365, including weekends and holidays.
Is RTP better than ACH for B2B businesses?
RTP can be better than ACH for B2B businesses that need instant payments, real-time cash flow visibility, and 24/7 settlement. Real-time payments settles in seconds and is ideal for urgent vendor payments and supply chain transactions.
RTP vs ACH
| Feature | RTP | ACH |
|---|---|---|
| Settlement Time | Seconds - Minutes | 1 - 3 Working Days |
| Availability | 24/7/365 | Business Hours |
| Cash Flow | Instant | Delayed |