ARTICLE
As the year 2023 is around the corner, people and businesses prefer to transact using internet-based payment methods, but the banking infrastructure needed to make it happen is still catching up to the reality of the new financial structure in the MEA and Asia Specific region. Hence customers and consumers in rural areas or located just outside of major cities prefer to transact in cash, leaving B2B businesses that deal with shops and warehouses with the cumbersome process of manually managing large amounts of cash – cash collection, cash pickup, cash delivery, and cash delivery in transit – multiple times in a month.
For cash-oriented businesses, cash collections on premise add up at the end of every month and sit idle for days and weeks up until the point collections are deposited in a bank account, which results in under-utilized working capital to the detriment of company growth. Managing cash subscriptions manually also poses a grave security risk. Shops and warehouses lack the bank grade security needed to keep collections safe, while also not having access to bank branches nearby in areas outside major cities and rural areas. The time and cost to deliver cash collections to their chosen bank to make deposits takes up significant resources: making the trip to a bank branch to deposit a small amount cash collection is costly in terms of travel and bank fees, while waiting until the end of the month to deliver a large amount of cash collections is risky.
The need for on-site smart cash deposit machines
For cash-oriented businesses, managing cash collections manually takes up significant business resources: employee/staff time to collect and deliver cash that can instead be used on activities to grow the business, human error or theft that reduces the amount of collections, and the delayed access to collections that remains inaccessible until cash collections are deposited at a bank branch subject to their terms and conditions.
Digitise Financial operations with Loop
Technology-enabling businesses are paving the way for cash-oriented businesses to digitise their cash subscriptions – starting from the various points of collections to hiring a CIT vehicle service to tracking their cash deliveries in transit – and enjoy the convenience and benefits of digital financial operations immediately.
Loop has created a novel hardware – Loop machine – and software – Loop App – solution for collections and cash in transit to optimize manual cash based financial operations for businesses. Loop helps businesses with significant cash collections eliminate inefficiencies in manual financial operations that result in significant working capital savings every month by over 60%.
Digitizing cash subscriptions for businesses can greatly increase operational inefficiencies. By working with Loop, organizations get to use Loop Machines – smart cash deposit machines – which are configurable and can be installed on any premise of your choice – to instantly deposit cash collections with guaranteed bank grade security around the clock, and enables secure cash pickups and cash deposits from various cash handling agents that interact with the machine.
How Loop smart deposit machines work with the Loop software
Loop machines are smart cash deposit machines that store the physical assets – cash – and are interlinked with the Loop App, a cash management software which provides real time visibility into the corresponding cash data. This means that permissioned business stakeholders get to have a bird’s eye view of cash collections in realtime and gain insight into spend, cash, and financial resources institution-wide. Moreover, once the cash is deposited into the smart cash deposit machines, the corresponding collections data is sent to partner banks which converts your physical cash into remote cash and makes it accessible instantly, making access to finances significantly faster.
Eliminate the risks associated with cash collections
No longer does the process of cash collections have to be a grave security risk for cash-oriented businesses. Cash leakages are often recorded as a bad debt expense for businesses that have manual cash management operations, but with smart cash deposit machines installed on site, this expense can be realized as hidden working capital. Moreover, holding money bags of cash on premise is a cash leakage risk that can also impact the morale of your management team. When cash goes missing, the mandatory cross-questioning and raising eyebrows at fellow employees can disrupt the trust and effectiveness needed to run smooth operations that require team effort.
Automate, hire, and manage cash in transit by working with Loop
By working with Loop, businesses can review from a list of regulated cash in transit companies and book cash-in-transit/CIT vehicle services right from the Loop App to gain real time visibility on their cash-in-transit and can even track their cash deliveries in transit in real time via google maps. Businesses can handle increased cash in transit (CIT) demand, receive, and review CIT requests from hundreds of cash pickup and cash delivery agents in real time.
Moreover, permissioned stakeholders can review requests, update pickup and drop-off timings on terms convenient for both the stakeholder and the CIT vehicle company personnel. Loop allows cash-oriented businesses to track and complete cash in transit operations, manage differences and upload deposit slips, and conveniently view the entire history of completed orders.
Automated reconciliation with Loop
Once a business deposits their cash in a Loop smart deposit machine(s), they can use the Loop app which provides automated real time reconciliation for in-coming and out-going payments at scale. Businesses with significant monthly cash collections get to reconcile high volumes of transactions without growing their workforce. The Loop App does the work by connecting the payables data with banking systems, batch upload reconciliation data from the softwares already in use (ie excel or google sheets) and provides tools and analytics to track and manage reconciliation activities accurately. With automated reconciliation, supplier and vendor payments can become a seamless process to manage and free up the workforce for activities that grow the business.
Work with Loop today
Loop offers a FinOps OS solution for cash-oriented businesses to optimize their cash management practices – cash collection, cash pickup, cash delivery, and cash delivery in transit – by digitizing cash subscriptions. Businesses can safely store their cash collections in smart cash deposit machines with bank grade security on premise, and conveniently manage every shop-to-premise, premise-to-bank cash lifecycle, freeing up staff to pursue activities that grow the business and discover new working capital. Having instant access to collections and real-time visibility on financial analytics enables businesses to make timely data-driven decisions and leverage their working capital to make optimal decisions for growth.