What are Virtual Accounts?

Fennech Financial's Virtual Accounts are digital cash ledgers linked to a primary bank account, enabling businesses to create multiple sub-accounts without the need for additional physical bank accounts. This approach simplifies financial management by providing detailed insights into transactions and liquidity across various segments of an organization, such as departments, subsidiaries, or projects. By implementing Fennech's Virtual Accounts, businesses can streamline financial operations, reduce banking fees, and gain comprehensive insights into their cash flows, leading to more efficient and effective financial management. Want to know more? get in touch!

What financial processes can Fennech Financial automate?

Fennech Financial specialises in automating a wide range of financial processes to streamline operations and improve efficiency. These include payments and collections, reconciliations, intercompany transactions and many more. Our platform is designed to reduce manual intervention, improve accuracy, and give businesses more control over their financial processes. Let us know if you'd like more details on automating a specific process!

Is Fennech a Treasury Management System?

Fennech Financial is not a TMS although you will find that some of our solutions extend in the capabilities often found in TMS. Instead we act as a middleware between TMS, ERPs and banks allowing businesses to seamlessly integrate with Payment, Treasury, and Banking solutions helping to bring visibility, control, and end-to-end automated processing into existing infrastructures with minimal human intervention.

Why Use ACH Over Wire Transfers: Cost and Efficiency Explained

Discover why ACH is a better choice than traditional wire transfers. ACH offers significant cost savings and increased efficiency. With lower fees and faster processing times, it’s perfect for regular payments and small businesses. Avoid the high costs and delays of wire transfers by switching to ACH today.

Chief Revenue Officer

Melina Moussali

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Why Use ACH Over Wire Transfers?: Cost and Efficiency Benefits

Treasury Finance Operations: ACH Payments vs. Wire Transfers - A Comparison Guide

When it comes to managing your company's finances, choosing the right payment method is crucial. This guide will help you understand the differences between ACH (Automated Clearing House) payments and wire transfers and why ACH could be a better choice for your business.

What Are ACH Payments?

ACH payments are electronic transfers of funds between banks through the Automated Clearing House network. This system is widely used for direct deposits, bill payments, and other types of financial transactions.

What Are Wire Transfers?

Wire transfers are another method of transferring funds electronically. They are often used for large, one-time payments and are processed almost instantly.

Key Differences Between ACH Payments and Wire Transfers

Cost ACH Payments: Typically, ACH payments are much cheaper. Fees are usually minimal or even free, depending on your bank. Wire Transfers: These can be quite expensive, with fees often ranging from $10 to $30 per transaction.
Speed ACH Payments: These generally take 1-3 business days to process. While not immediate, the speed is often sufficient for regular business needs. Wire Transfers: Wire transfers are processed almost instantly, usually within a few hours. This makes them ideal for urgent transactions.
Security ACH Payments: ACH transactions are secure and reliable, with built-in protections against fraud. Wire Transfers: While also secure, wire transfers come with higher risks if the receiving account information is incorrect.
Efficiency ACH Payments: ACH is ideal for recurring payments like payroll and regular vendor payments. It's automated and reduces the administrative burden. Wire Transfers: Best suited for one-time, high-value transactions where speed is crucial.

Why Use ACH Instead of Wire Transfers?

Cost Savings With lower fees, ACH payments can save your business a significant amount of money, especially if you make frequent transactions.
Efficiency Gains ACH payments can be automated, reducing manual work and the risk of human error. This is particularly useful for recurring payments like salaries and regular supplier invoices.
Reliability ACH payments are highly reliable and come with robust fraud protection measures. This ensures that your money reaches the intended recipient safely.
Sufficient Speed For most business needs, the 1-3 day processing time of ACH payments is perfectly adequate. The slight delay is often outweighed by the cost savings and efficiency benefits.

For SME and enterprise finance leaders, choosing ACH payments over wire transfers can lead to substantial cost savings and improved efficiency. While wire transfers are faster, the benefits of ACH payments often outweigh the need for speed. By understanding these differences, you can make more informed decisions that benefit your business financially and operationally.