Small business owners have plenty of responsibilities to manage between daily operations, leading their teams, and keeping customers happy. If you choose to take out a business loan, autopay is a helpful option to make the repayment process simpler and more efficient.
By allowing your lender to automatically withdraw payments based on your established loan terms, you can ensure that your payments are made on time without a second thought.
Sometimes these errors can occur with autopay, but fortunately, there are simple solutions for all of them:
- There’s not enough money in your account to cover the payment at the time of withdrawal. Be sure to check your account balance before the due date. In this situation, you’ll need to use another method to make a payment.
- The money in your account isn’t available for withdrawal yet. If the money in your account isn’t available at the time of the automatic withdrawal, the funds in your account might not have processed yet. To prevent this issue in the future, make your account deposits at least 2-3 business days before the payment date.
- The account you provided doesn’t allow automatic withdrawals. Some types of accounts don’t allow certain types of transactions such as direct debits or automatic withdrawals. You’ll have to provide information for a different checking account that allows automatic withdrawals in this case.
- The withdrawal is unauthorized. This can happen for several reasons, such as if your lender is designated as unauthorized for automatic withdrawals, you or your bank accidentally report the payment unauthorized, or if your bank blocks the transaction because it appears unauthorized. In any of these scenarios, contact your bank to find out why the transaction is unauthorized. If the problem can’t be resolved, you’ll have to provide new account information for future payments.
- There’s an error in the account number you provided. Sometimes, the issue is as small as a typo if your account information is entered with a wrong digit or in an incorrect format. Be sure to double check your information when you enter it. If there’s an error in the information on the payment date, provide the correct information for future payments.
When these errors are avoided, autopay is a valuable tool for easy small business loan payments.