Cash application automation for commercial lenders
Cash application automation takes incoming bank deposits and posts them to the right invoices and borrower accounts automatically, with a confidence score on every match. It is the cash posting lens of payment matching and reconciliation: where reconciliation confirms that a payment ties to a transaction, cash application decides exactly which open invoices the money clears and by how much. Zolvo runs this as automated cash application so your team reviews only the deposits the engine cannot resolve on its own.
What is cash posting?
Cash posting is the act of recording a received payment against the specific invoices and accounts it pays. When a debtor wires funds, someone has to read the remittance, find the matching open invoices, and apply the deposit so the ledger reflects the new balances. Done by hand it is slow and error prone, especially when one deposit covers many invoices or arrives with no reference at all. Cash posting automation does this work from the bank feed, applying each deposit and flagging only what needs a human.
How automated cash application handles real-world payments
Most deposits do not arrive as a clean one-invoice, one-payment match. Payment posting automation has to handle the messy cases that consume an operations team:
- Lump-sum payments. A single wire covering several invoices is split and allocated across each open balance it clears, instead of being posted as one undifferentiated credit.
- Partial payments. When a debtor pays part of an invoice, the deposit is applied to the right open balance and the remainder stays open, so nothing is closed prematurely.
- Short payments. When the amount received is less than billed, the gap is flagged with its confidence score rather than silently written off, so disputes and deductions stay visible to collections instead of triggering calls on invoices that are already paid.
Every allocation carries a confidence score. Exact reference and amount matches post automatically; lower-confidence deposits drop into an exception queue with the bank transaction, the candidate invoices, and the reasoning behind each suggestion.
Cash posting software that augments your stack
Zolvo is AI back-office automation for commercial lenders, and it augments the systems you already run rather than replacing them. Cash posting software connects to your bank feeds through Plaid and writes applied cash back to your servicing and accounting systems. It works alongside LoanPro, FactorSoft, and QuickBooks, so the ledger your team trusts stays the system of record.
Across unstructured payment data the engine reaches an 87% auto-match rate and runs cash application up to 12x faster than manual posting, contributing to a 70% reduction in operations cost. Go-live is roughly two weeks, with pricing starting around $500 per month. Everything runs under SOC 2 Type II controls, AES-256 encryption, and strict tenant isolation.
Frequently asked questions
What is the difference between cash application and reconciliation?
Reconciliation confirms that payments in your bank feed tie to expected transactions. Cash application is the posting step inside it: deciding which specific open invoices each deposit clears and by how much. Zolvo runs both, with cash application as the sharper cut focused on allocation.
Can it handle one payment that pays many invoices?
Yes. A lump-sum deposit is split and allocated across the invoices it covers, with a confidence score on each allocation. Partial and short payments are applied to the correct balances and flagged when the amount received does not fully clear what was billed.
Does cash posting automation replace my accounting system?
No. Zolvo augments your existing stack. It reads from your bank feeds via Plaid and posts applied cash back to systems like LoanPro, FactorSoft, and QuickBooks. There is no rip-and-replace, and go-live takes about two weeks.