As a business, you might have multiple bank accounts at different financial institutions. Cash flow transfers allow funds to move between them. In this article, you will learn the specifics of this mechanism and how to apply it to maximize cash management.

What’s in this article?

• What is a cash flow transfer?
  
• Why use cash flow transfers?
  
• How cash flow transfers work
  
• How Stripe Capital can help
  

What is a cash flow transfer?

A cash flow transfer, abbreviated VSOT in French, is a special type of transfer used by companies and multibank business groups to move funds between two financial accounts. Normally, each account is at a different bank.

Why use cash flow transfers?

These movements are a cash management tool. They enable companies to balance their bank accounts and avoid overdraft fees. Companies that belong to a larger group or have subsidiaries in France or elsewhere in the European Union mainly rely on this type of transfer. Unlike business customers, individuals often use SEPA credit transfers and instant wire transfers.

Cash flow transfers are practical because banks can execute them the same day when requests meet the cutoff time. Consult your financial institution for specific submission deadlines. For example, Banque Populaire executes these movements of funds the same day, Monday to Friday (except for holidays), if requests are received before 3:30 p.m. Crédit Mutuel’s cutoff time for cash flow transfers is 11:00 a.m.

How cash flow transfers work

A cash flow transfer can be initiated at a branch using a signed hard-copy transfer order, on the internet or via a mobile application using e-banking services, or through a bank data link.

When the financial institution receives the transfer request before its submission deadline, the exchange takes place the same business day. The value date for debiting the issuing account therefore matches the value date for crediting the recipient account.

Fees

Cash flow transfers are usually fee-based services, and the charge varies by bank and transmission channel. At Banque Populaire, fees range from €13.20 for the movement of funds initiated at a branch to €4.65 for those ordered through the Cyberplus Entreprise data link service. Corresponding charges at Crédit Agricole are €10.40 for transfers requested at a branch and €5.80 for movements initiated via data link. Businesses need to consult their institution’s rate card for specific pricing information.

How Stripe Capital can help

Stripe Capital offers revenue-based financing solutions to help your business access the funds it needs to grow.

Capital can help you:

• Access growth capital faster: Get approved for a loan or merchant cash advance in minutes—without the lengthy application process and collateral requirements of traditional bank loans.
  
• Align financing with your revenue: Capital’s revenue-based structure means you pay a fixed percentage of your daily sales, so payments scale with your business performance. If the amount that you pay through sales doesn’t meet the minimum due each payment period, Capital will automatically debit the remaining amount from your bank account at the end of the period.
  
• Expand with confidence: Fund growth initiatives such as marketing campaigns, new hires, inventory expansion, and more—without diluting your equity or personal assets.
  
• Use Stripe’s expertise: Capital provides custom financing solutions informed by Stripe’s deep expertise and payments data.
  

Learn more about how Stripe Capital can fuel your business growth, or get started today.