Reducing Cash Flow Delays
In October 2017, Snapsheet launched Snapsheet Transactions, which eliminated the need for paper checks. FenderBender sat down with Snapsheet to discuss what the number one takeaway is for a collision repair facility.
Instead of insurance carriers sending claimants a check in the mail once a claim is settled, Snapsheet Transactions provides carriers a payment hub for issuing claims and expense payments via a variety of payment options, without adding complexity or risk to their back-end processes, according to a company press release.
Snapsheet Transactions offers a way for claims payments to be digitally distributed from enrolled carriers directly to customers, or to any repair facility that is repairing a vehicle. David Boddy, vice president of Snapsheet Transactions, shared how it works and how it ultimately could reduce cash flow delays.
Boddy says says the communication problem between shops and banks could be solved because an owner can see the digital payment was issued 48 hours before it is in the bank account.
And, the process is also secure, he says. Due to "tokenization", the payment goes between the company and the bank while being sent using a random code. The bank account number and the routing number aren't sent between businesses.
One issue that shops might face right now, Boddy says, is the issue of receiving checks in the mail or via email. Then, the shop owner needs to take an additional step to cash the check, which can cause a further delay in cash flow in the shop's financial statements.
But, the owners using Snapsheet Transactions could see a payment is on the way even before a repair is done and the vehicle is set to be delivered.
To learn more about Snapsheet Transactions, click here.