When it comes to payment by corporates, companies are used to writing, signing and mailing out cheques.
While many companies are still using cheques, there may be certain benefits to using the new method Paynow Corporate. Just like how covid 19 made us adopt certain technologies quicker than we would have if covid 19 didn’t exist, Paynow Corporate may soon be used more and more frequently among corporations due to its efficiency and convenience.
Direct Transfer using UEN Number
By using Paynow Corporate, transfers to other companies are direct transfers. Your company would only need to know the UEN or Unique Entity Number of the company to initiate the PayNow Corporate transfer. There is no need to ask for any bank account details from the corporate recipient. Of course, the receiving company must have their Paynow Corporate account set up before they are able to receive Paynow Corporate payments. There is also no need to spell the full company name and full amount in alphabets like you usually would do for cheques as knowing the UEN of the company and the amount to be transferred would be sufficient.
Payments Can Be Received Quickly
Payments received by PayNow Corporate are usually immediate or almost immediate. As we know cheques may take some days to clear and must be dropped in a cheque deposit box to be processed by the bank. If the amount is insufficient in the account or if the details are not written correctly, the cheque may even bounce. This takes time to rectify or resend a new cheque.
No Need to Mail Out Cheques
Although there may be a nominal fee if your company is using PayNow Corporate to initiate a transfer, the efficiency of this payment method may well be worth it. Furthermore, mailing out cheques within sealed envelopes by postal mail also has certain costs to it. Not only do stamps and envelopes cost money, time and effort in identifying the correct mailing address of the recipient is also needed. The process of writing, signing, verifying and sending out cheques also requires effort and time.
Collecting & Dropping Cheque Not Required
Collecting and dropping of cheques is also not required. This saves time and transport cost. This may also help to minimise interactions between individuals and we may be able to emerge victorious over the virus sooner.