2 min read
Definition
A BACS payment moves money between UK bank accounts through the Bacs scheme, powering Direct Debits (you collect) and Direct Credits (you pay, e.g. payroll). It clears on a three-working-day cycle, unlike instant Faster Payments.
In plain terms
It is the workhorse behind wages, supplier runs and Direct Debit collections — low-cost and dependable, but not instant, so timing matters for cash flow.
Why it matters for your company
Build the three-day BACS cycle into your cash flow forecast so a payment initiated Friday is not assumed cleared Monday. Direct Debit collection also improves debtor days. See standing order.
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