Today, you can see multiple small businesses around you. There are numerous stalls overflowing with colorful textiles, handcrafted jewelry, and fresh produce. Among these vendors, you may find individuals whose business began with just a modest loan.
Microfinance institutions empower people in underserved communities by providing them with loans. These institutions not only offer money but also provide hope and a pathway to economic growth.
However, the journey of MFIs is not without challenges. For many MFIs operating in rural or under-resourced regions, mailing checks has become not just a choice but the only reliable payment option. Some of the difficulties that a microfinance institution may face while mailing checks via traditional methods are as follows.
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- Traditional mailing processes require separate charges for postage, paper, envelopes, and printing. This can quickly add up, especially for institutions with high transaction volumes. These costs are difficult for MFIs with small budgets.
- Doing the entire check mailing process, from ordering checks to sending them, delays fund disbursement. This lag can hinder borrowers who need quick access to funds for urgent expenses or business needs.
- Managing physical check mailing can be labor intensive as it requires separate staff. Verifying addresses, handling returned mail, and managing follow-up communication manually add to the workload, reducing time for core activities.
- Most mailing methods do not offer tracking facilities. So, it can be difficult to confirm whether a check was received or processed. Moreover, ensuring accurate records for each check mailed can be challenging, especially if there is a dispute about delivery or clearing.
Zil Money offers an efficient, cost-effective alternative to traditional check mailing. The platform helps MFIs simplify their payment processes even in rural or under-resourced areas.
Automate Your Check Mailing Process
With Zil Money, you can automate the check mailing process. You can integrate the platform with your accounting software which allows you to import check data. This way, the platform allows you to automate the check-writing process. This means that you no longer have to manually write each of your checks.
The convenience of the cloud-based platform does not stop here. The platform even allows you to automate the entire mailing process. That is, the platform will print your checks, label them, put them in an envelope, and send them securely on your behalf. You can do this entire process with a single subscription.
The ability of the cloud-based platform to automate the check mailing process can help MFI owners save valuable time and effort. Moreover, automating check writing and mailing reduces human errors associated with manual processes. This precision is crucial for MFIs, as errors in loan disbursement can disrupt borrower’s business operations and can harm the reputation of the institution.
Send Checks the Way You Like
With Zil Money, you have multiple ways to mail your checks. You can choose among them depending on your urgency to deliver checks. Let’s see them one by one.
First Class Mailing: Sending checks via this feature allows you to deliver your checks within 1-5 business days. The platform allows you to choose the same feature with a tracking facility as well. You also have a first-class Canada option, which also takes 1-5 business days.
FedEx Mailing: Zil Money offers you FedEx Overnight, FedEx Overnight Canada, and FedEx Saturday. The overnight check mailing feature delivers your check within the next business day. FedEx Saturday feature allows you to deliver checks even on weekends.
USPS Mailing: Zil Money offers you two mailing features via USPS. One is the priority mail, which takes 1-3 business days. The next one is express mail, which delivers checks within two business days.
Attach And Send Documents Along with Checks
While mailing checks via Zil Money, you have the option to attach documents as well. The platform will print the document along with your checks and will send them to your payee. This feature offered by the platform is incredibly beneficial for microfinance institutions. It helps them to include detailed documents explaining the loan terms, repayment schedules, or transaction summaries alongside the check.
Moreover, the feature allows MFIs to meet regulatory requirements by providing specific documentation, such as loan agreements or transaction receipts, to borrowers. By attaching these documents, an MFI can ensure compliance and provide borrowers with important records in one package.
Alternatives to Mailing Checks
Zil Money offers multiple other payment options in addition to the check-by-mail feature. Some of them are ACH, wire, eCheck, credit card, payment link, etc.
- ACH is one of the most cost-effective payment options that an MFI could have. The platform also offers same-day ACH, which delivers funds within the following business day.
- The next payment option, wire, is ideal for making large transactions as it offers high transaction limits. You can make both domestic as well as international wire transfers with the platform.
- eChecks are digital versions of physical checks that are processed via the ACH network. With the platform, you can send eCheck as one-time printable PDFs via email or SMS.
- Zil Money allows you to make credit card transactions without transaction fees for the payee. The platform eliminates this interchange fee by acting as a mediator between you and your payee. The cloud-based platform will accept your credit card payment and will then send it to your payee via another payment option chosen by you.
- Payment links can be easily created and sent using the cloud-based platform. They are the best for receiving payments from customers instantly. You can send customized payment links via email or SMS using the platform.
Conclusion
The check-by-mail feature on Zil Money can greatly help a microfinance institution. The platform helps the institution by automating the entire check mailing process and offering multiple ways to mail checks. The ability to attach and send documents along with checks is another highlight.
