U.S. Bank can now provide loan funds to auto and RV dealers instantly after the loan contract is finalized by the bank through the Clearing House real-time-payment (RTP) network.
Following a successful pilot completed in June, U.S. Bank has already enabled more than 800 auto dealers to receive funds from auto loans via a real-time payment. A U.S. Bank spokesperson said the company transitioned about 50 RV and marine dealers to RTP funding in the last two weeks. More RV and marine dealers are being added each week, the spokesperson said.
Real-time payments to dealers are fast, secure and available seven days a week, including holidays. The traditional automated clearing house network (ACH) payment method for funding auto loans can take several days, especially when sales are made outside of business hours, U.S. bank said.
Dealers using real-time payments gain a competitive advantage, with greater control over cash flow and improved contract-in-transit metrics, a key performance indicator for auto dealers and their employees, U.S. Bank said.
“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, U.S. Bank president of dealer services. “We are 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.”
