QuickDraw: No-Reserve Instant Funding
Last updated June 4, 2024
Tank Payments offers partners Quick Draw, a product that allows payors to issue instant payments from any bank account and into a client's Tank account. Quick Draw enables factoring companies to deliver funds to carriers’ Tank accounts without requiring a pre-funded reserve account.
Why is this useful?
For a variety of reasons, it may not be advantageous for factoring companies to hold a large reserve account in their funding account at Tank Payments. For customers where this is a priority, we’ve created a process that allows Tank to initiate debits from the factor’s operating account, while making those funds instantly available for use by Tank clients. In many cases, Tank Payments may be able to draw directly from a zero-balance account (ZBA) or line of credit (LOC), minimizing accrued interest.
How does it work?
- Tank makes a request to the factor's external account to verify its current balance, and ascertain that it’s sufficient to make the payment.
- Tank initiates an ACH debit from the factor’s account in the amount of the funding.
- Tank makes the amount of the ACH debit immediately available for disbursal into clients Tank wallets.