U.S. Bank is now offering automotive dealerships instant loan funds following a loan contract finalization through the RTP® Network.
“U.S. Bank is focused on delivering innovative real-time payment solutions to resolve what our customers tell us are their payments pain points,” said John Hyatt, president of dealer services at U.S. Bank. “We’re simplifying loan payment processes to help our dealer clients better control their cash flow, which gives them a competitive edge and peace of mind. Dealer interest in this solution over the last few weeks has grown rapidly, with many particularly excited about finalizing their deals within moments after a consumer is approved for a loan, especially during the evenings and even on Saturdays and Sundays.”
U.S. Bank initially ran a pilot program using the real-time payment available through The Clearing House’s RTP® Network which was completed successfully in June. Since June, U.S. Bank has sent real-time payments to more than 800 dealerships, according to a news release.
Real-time payments to auto dealerships can be made instantaneously following the acceptance and finalization of an auto loan. This is a huge contrast to traditional ACH payment methods that resulted in funding taking days to reach dealers.
According to the press release, dealerships that are able to access real-time payments further gain a "competitive advantage" with increased "cash flow and improved Contract-in-Transit metrics, a key performance indicator for auto dealers and their employees."
Real-time payments are available to be sent to dealerships 24 hours a day, every day of the year, the bank said.
The Clearing House’s RTP® Network is the first new payment rail in more than 40 years, according to the release. U.S. Bank states that it is "continually developing new ways for companies to utilize real-time payments, such as a new solution to provide greater speed and security to money movement between individual investors and broker dealers."
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