We all know how direct debits benefit us as consumers, but they can offer all kinds of advantages to business owners too. From the little things like saving you a few minutes here and there to bigger things like improving your company’s cash flow, the perks of using direct debit collection wherever possible make it well worth considering as part of your strategy, according to a report by www.debitfinance.co.uk.
So, let’s start with cash flow.
Using direct debits means you’ll always know in advance exactly when funds will be cleared and in your bank account, and that greatly reduces the room for oversights and cash flow issues within the business. It’s also good news for the members of your company accounts team, as once your customers have set up their debits to ensure regular and timely payments they’ll have far less need to chase late payments and send out reminders when they’re outstanding.
Customer loyalty and retention
If you’re focusing on ways to see an increase in customer loyalty and retention, then direct debit collection can help. Once a debit is set up and things are plain sailing on the payment front, many customers are happy to stick with one supplier and will be less inclined to move to a competitor. In short, it’s easier for them to continue paying the company they’re familiar with and that they have the debit set up with. Don’t forget, the direct debit guarantee provides protection for both you and your customers, so in the rare event that there’s a problem, you’re both covered.
Thinking about the environment?
If your company ethos includes consideration for the environment then there’s another advantage to using direct debits, they make it far easier to limit the amount of paper you use and store throughout the company. The more you rely on the direct debit scheme the easier it is to go paperless, and that can only be a good thing.
A report by www.debitorder.com further explains the major benefits of using debit order collection for your business
Starting a new business can have many new obstacles to overcome. One of these obstacles include collecting money owed by customers at month end. It can be surprising to new business owners how demanding, complicated and frustrating the process of collecting money from debtors can be.
Direct debit has the perfect solution to this highly demanding and tedious task. Many of the businesses using our very simple and cost-effective debit order collection systems have discovered that we can automate the entire process from invoicing to the collection of funds as an all-in-one process.
Once you’ve added your customers on the system, it will automatically create an invoice, debit funds from their bank account, reconcile the transaction and ultimately pay out the funds to you.
The solutions offer three distinct benefits that can dramatically help your business, making your company more effective and increasing both your cash-flow and profits.
The flexibility of the debit order system allows for easy automation of the entire debtor’s process. Request payment, reconcile and take action.
You can choose to integrate the debit order service with your existing software or accounting solution or make use of our billing system.
As debit orders are generally collected on specific dates you’ll know exactly when to expect money in your bank account, giving you better control of your cash flow. By having this information, you will be able to budget properly, which means that you can, for example, set aside funds for important business items or services.
So, why wait on your debtors to make payment when they feel like it. Get paid when payment is due and achieve more with your business.
The debit order process allows businesses to obtain what they are owed automatically, avoiding manual payment from the customer.
Since you are no longer dependent on another party’s time, this allows your business to be more efficient and productive which leads to conducting better business and increasing profits.
Taking the major benefits into consideration, it’s quite clear that the use of a debit order solution holds many benefits over traditional and more costly means of being paid.
So, get in the driving seat today and switch to a debit order solution and enjoy the benefits of easier and more cost-effective payments.
According to www.ezidebit.com/en-au, as a business owner, you’ve probably heard some of the same old excuses from customers for not paying you on time. “It must have slipped through”, “I haven’t seen that invoice yet”, or that golden oldie “The cheque’s in the mail”.
Using direct debit is a very simple way to avoid all these excuses, take control of payment collections and improve your cash flow.
Placing your customers on a direct debit payment plan allows you to regularly draw payments from your customer’s bank account or credit card. Once your customer authorises the payments to be collected, payments are automatically debited from their account, providing total control over your payments.
One of the biggest benefits of direct debit is that it delivers a constant and regular stream of payments that improves your cash flow and provides greater certainty for your forecasting. Because you’ve agreed with your customer when and how much will be paid, you know exactly what’s coming. With greater cash flow certainty, you can focus on other things, like running your business.
Setting up your customers on direct debit can also save you valuable time and money. There’s no more need for you or your staff to chase late payments when customers are automatically paying you regularly and on time. When you take these time and cost savings into account, direct debit is probably the most cost-effective method to collect payments from customers.
Offering direct debit makes life much easier and simpler for your customers as well. Instead of having to take time out of their day to pay you, you are giving them an automated method that does everything for them after the initial set-up. Without this regular effort to make a payment each time, you’ll find this will lead to increased customer retention.