How Fintechs Can Fix Cash Flow Challenges

Discover why native banking and treasury capabilities are your fintech’s product differentiator.

What stalls growth? For many businesses, it often comes down to a single, persistent challenge: cash flow management.

Tracking payments, managing unpredictable revenue cycles, and covering time-sensitive expenses all require precision. Without the right infrastructure to move and monitor funds efficiently, maintaining healthy cash flows and optimizing capital becomes a significant hurdle.

Fintech platforms are uniquely positioned to simplify cash flow management for business users — if they offer the right tools. By embedding banking and treasury capabilities into your platform, business customers gain faster access to funds, real-time visibility into their cash position, and new opportunities to optimize working capital.

Let’s take a closer look at how banking and treasury infrastructure can help your fintech deliver better cash flow experiences and unlock lasting value for customers.

Key takeaways

• Businesses across industries face cash flow challenges stemming from delayed funds access, fragmented visibility, and idle capital. 
• Fintech platforms can embed banking and treasury capabilities to help users access, manage, and grow their cash. 
• Priority’s banking and treasury solution, Passport, simplifies cash management with features like dedicated sub-accounts and transparent reporting dashboards, adding new value to your platform.

What creates cash flow challenges for businesses?

Businesses across industries are under pressure to optimize and accelerate cash flow. Yet, many organizations still rely on outdated financial workflows and infrastructure that delay money movement and limit visibility.

Consider a property management firm that collects rent payments digitally but waits days for funds to settle. As a result, the company faces liquidity challenges that delay vendor disbursements and delay tenant refunds. 

Multiple issues and inefficiencies can affect cash flow management, including:

Delayed access to funds

Funds often take longer to become available than businesses anticipate. Even when payments are initiated promptly, processing delays can slow access to usable cash.

Lags in fund availability create liquidity challenges that disrupt day-to-day operations, such as paying employees and vendors promptly. 

Mismatched cash inflows and outflows

Revenue and expenses rarely follow the same cadence. Businesses need to cover fixed obligations such as rent, payroll, and loan payments. However, income may arrive unevenly due to the timing of client payments and sales cycles.

Without tools to proactively coordinate inflows and outflows, businesses risk running out of cash when expenses come due. This misalignment can strain vendor relationships and lead to unnecessary reliance on short-term credit.

Limited cash visibility 

Many businesses operate without a clear view of their financial position. Key data may live across multiple accounts or systems, with no central source to provide timely insights into cash positions.

When financial information is fragmented, it becomes difficult to forecast accurately and respond quickly to business needs.

Non-optimized capital

If excess cash sits unused in low-yield or non-interest-bearing accounts, businesses miss an opportunity to leverage capital for growth. For example, funds in reserve to cover quarterly tax payments could be invested in the interim.

Even when capital is available, it often stays idle if businesses lack the tools to put cash to work and generate returns.

How Embedded Banking and Treasury Improves Cash Flow Management for Your Users

Cash flow challenges are common, but they aren’t inevitable. Fintechs can ease friction with integrated tools that help users access, manage, and optimize their cash flow.

Embedding banking and treasury capabilities into your platform empowers users to handle and oversee key financial activities through a streamlined experience.

Here are three key ways this functionality can drive healthier cash flow for your customers:

1. Accelerate fund availability

Cash that’s stuck in transit can’t support operations. Embedded banking infrastructure helps your users improve their cash position by accelerating disbursements and simplifying back-office processes. 

In particular, look for a solution with same-day funding capabilities. Through Priority’s banking and treasury management solution, Passport, users can link directly to their processing account for same-day funding of closed batches — including on weekends and holidays.

Passport also automates transaction reconciliation by matching deposits with transaction details like invoice numbers and remittance details. That means finance teams spend less time chasing down payments and have faster access to the cash that keeps operations running. 

2. Simplify fund movement

Rather than relying on a patchwork of external tools, your users can leverage embedded banking and treasury capabilities to track and manage fund movement via your platform.

For example, a business can automatically route portions of incoming revenue into dedicated sub-accounts for specific purposes like savings, taxes, or escrow. Or the business can choose to automate bill pay for vendor payments to ensure obligations are met on time.

To complement these features, choose a solution that offers transparent dashboards and transaction reporting. With full visibility into account activity and balances, users can make confident, timely decisions based on their cash position.

3. Optimize idle funds

The right treasury infrastructure can also help users grow cash reserves. As you assess solutions, look for investment capabilities to generate yield on idle funds. 

For example, a business can use Passport Cash Builder to invest surplus cash into money markets, U.S. Treasury Bills, or core bond funds. These options can be tailored to meet varying liquidity preferences and align with business objectives. 

Embedded investment capabilities make your platform a growth engine, helping customers strategically generate returns on underutilized funds.

Empower Your Users With Cash Flow Control

Businesses need to accelerate their cash flow and optimize working capital — and they’ll stay loyal to the platforms that offer a solution. 

Priority’s banking and treasury management solution lets you embed features like same-day account funding, automated reconciliation, and investment tools directly into your software through our robust API suite. With visibility into every transaction, you’ll deliver the speed, flexibility, and transparency modern businesses expect. 
Ready to help users take control of their cash flow? Connect with Priority to learn why embedded banking and treasury capabilities are your fintech’s product differentiator.