Adversity Breeds Innovation – “e-mmediate”

Adversity Breeds Innovation – “e-mmediate” – a blend of EFT and check guarantee that reduces transaction costs and takes the headache out of deliveries

Let’s face it. These are tough times for the building supply industry, and most others for that matter. Every dollar on your receivables including cash COD sales is precious. Economic downturns, such as the one we are in now, breeds uncertainty, increased stress, and fears of not getting paid. Job performance and even jobs can be affected.

As the guardian of the company purse, credit managers must search for ways to reduce transaction payment costs and still facilitate sales.

Finally, a new cash management tool is available to help you greatly reduce the cost of accepting payments, particularly in the area COD sales.

Do you routinely accept credit cards for COD’s and wish there was a secure but less expensive alternative?

Do you have to pay common carriers to pick up checks and wait a week or two before it is deposited and lose the cash flow benefit of having your money sooner?

Do your drivers forget to pick up checks?

Do you have customers who are not present at time of delivery causing scheduling headaches where the payment process is interrupted impacting your delivery routes?

Do you wish your drivers could concentrate on making quick “on time” deliveries and not get delayed by waiting for a check?

Do you have cash account sales that are COD or drop shipment that must be shipped same day?

Do you have rental equipment customers that want to extend the rental period without having to drop off another check?

If you answered “Yes” to one of the above, then read on.

Many NACM members are familiar with American Check Management’s check guarantee program as well as their ACH (Electronic Funds Transfer) service. Some of you have even requested a hybrid of the two services and after listening to your input and requests, ACM has blended the two programs together. It is called “e-mmediate”, immediately guaranteed electronic funds.

Basically the only tool needed is internet access. The web based screen prompts you for the essential “check” information and within seconds an approval number is given. Like EFT, the funds are in your account two business nights later regardless of whether there are insufficient funds (including account closed). Unlike traditional check guarantee there are no reimbursement delays, no back office administration such as internal tracking or accounting of NSF’s, and warranty violations are eliminated. There is even an extended cut off time for deposits.

Sounds similar to a credit card transaction? From a cash flow standpoint you receive your money in a similar time frame. One big difference, however, is cost. E-mmediate is 30% – 40% less than a credit card transaction! If some of your current credit card transactions could be replaced with an equally beneficial option that cut your credit card operational costs by nearly a full percentage point then not only do you help your cash flow, but you can put significant profit dollars back on your bottom line. That’s worth getting excited about!

Let’s put this into real dollars and cents. If your average monthly COD credit card expense is $2000 per month and you could reduce your transaction costs by 35%, how much would be your annual savings? Answer – $8,400 !!! Furthermore, if your profit margin is 5%, then a $8,400 savings is equal to an additional $168,000 of sales!

So if you want to simplify your COD cash payment transactions, dramatically reduce your transaction fees, and enhance the credit department’s contribution to the bottom line, during these adverse economic times, then consider the benefits of the e-mmediate option. You’ll be glad you did.

Contact Rudet Fountain at 800-759-6786 for more information. Download emmediate_flyer.pdf

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