“We regret the inconvenience. We are trying to clear the process from our end. You can expect the transactions to be cleared by tomorrow.”  “We haven’t received your invoice. Your cheque is in the post. The person who authorises your payment is not in the office today.“

If you are familiar with the above excuses, you should also know that they come with consequences. Unexpected delays in payments can hurt businesses that have little or no cash reserves or credit to rely on. Especially in a traditional small business, every individual wears many hats and deals with myriads of stakeholders. He or she strives to manage relationships while maintaining a high level of efficiency. And, it becomes very difficult if a business sticks to a manual process for paying vendors, customers, suppliers, etc. 

Here’s how the end-to-end payment process for most organizations (SMEs) looks

A user logs in to the respective banking platform and enters transaction details for every payment done. Now, to authenticate each transaction detail and ensure everything is in order, you require another hand to oversee the security process. Piece of cake, isn’t it? 

It’s all pink skies and blue unicorns when you are getting started–manually inputting and routing every single payment sounds feasible. But what will you do when the scale and the sheer volume of transactions grows? Automate your financial ecosystem.

How can SMEs benefit from automated payouts?

For example, a small scale business uses cheques as a form of payment. Here we go again, it’s paper! And the risks of cheques getting lost in the mail is equivalent to an extended waiting period known as “We’ll get back to you soon.” 

It isn’t always the form of payment, blame the process of tracking payments too. Companies can lose money and damage relationships with vendors by missing deadlines, or even issuing a refund to the wrong person. It’s tough to track them if you are on your own and rely on traditional payment systems. 

Traditional banking systems are often difficult to operate, due to clunky, outdated systems and technology. Most banks grapple with legacy infrastructure and are unable to deliver products and services with ease and agility.

Customers using banking solutions are often faced with a range of problems like:

  1. Lengthy approval processes
  2. Heavy UI, complicated user flows
  3. Outdated systems that are not integration-friendly
  4. Poor customer tech support for queries

An automated payout system can help you avoid late payments, issue instant refunds to your customers, and help pay your vendors. Most importantly, the CRM serves as an eagle eye (control and visibility) for your financial operations.

RazorpayX

For businesses small or large, new age or incumbents, we offer you RazorpayX–a platform to accelerate disruptors by making their financial operations intelligent, automated and business focussed. 

By integrating with our flexible APIs and dashboard tools, customers can

  1. Accept and manage payouts via NEFT, RTGS, IMPS, UPI and more
  2. Upload contacts in bulk and share payouts in one go
  3. Track and analyze money movements for informed and impactful business decisions

Traditional Business Banking Vs RazorpayX

                Traditional Business Banking                              RazorpayX
Countless hours of manual effortsBetter customer experience with instant payouts  
Glitchy software and complex infra systemsControl, track and analyze all types of money movements from a single dashboard
Complex and non-flexible money movement viewsManage and track money movements from vendors, customers, and more
No insights on payouts Off-the-shelf analysis of payouts made

Conclusion

Automation is the need of the hour for India’s large SME sector. With the right technology, business owners can focus more on customers, and let the technology take care of processes. It eliminates drudgery, avoids the troublesome situations. The result, efficiency becomes the epitome of your business.