Provisional credit is a conditional credit that’s issued by your financial institution while a deposit has not yet been verified. Our SureTraxx DT program enables commercial banking customers to receive provisional credit – while their cash is still in-store. There are several reasons why you would want to acquire provisional credit for your company:
The Benefits of Provisional Credit
Provisional credit enables you to turn the cash in your store from a non-interest earning asset into working capital. This is a major benefit as your money can be used on the same day instead of waiting 2-3 days for each deposit to be verified at the bank and applied to your bank account.
With today’s low-interest rate market, companies have little incentive to reinvest their cash and would much rather manage their working capital to free up cash for everyday operations. Large retail chains with high cash volumes often deal with financial peaks and valleys and must have enough working capital in their bank accounts to pay off invoices and complete routine transactions. Without our SureTraxx DT program, cash that is sitting in your traditional safes cannot be used for these transactions. Depending on your credit rating and standing with the bank, you may be eligible for provisional credit to help control and regulate your business payments.
Furthermore, with provisional credit, the cash in your stores is immediately reflected in your bank account. The temporary credit provides you with greater cash visibility to better manage your operating capital and cash flow. As opposed to using credit-aging reports to anticipate incoming funds, Treasury departments become empowered to make smarter financial decisions based on a more accurate cash and coin position.
How SureTraxx DT Can Help
SureTraxx DT provides you with the opportunity to receive provisional credit if both you and your bank(s) are using our program. Once you create a digital deposit ticket on SureTraxx DT, the data is immediately sent to your bank through a file transmission. The real-time notification enables the bank to verify the incoming funds and provide provisional credit to eligible customers while the cash deposits are still in-store.
To unlock provisional credit across your network of stores, contact our team of experts for a cash management consultation today.