Payment collection is a vital activity for any business, but it can be very time-consuming and risky. Every business, be it small or big, deserves to be paid on time and the payment method can play a vital role in improving the process. Using Direct Debit Services, you can reduce the stress involved in the business as well as its customers.
There are numerous benefits of a direct debit system that can help you concentrate on the growth of your business. You won’t have to worry about getting paid, chasing late payments or your cash flow.
Get Paid on Time
If you have ever found yourself out of pocket because your customers don’t pay on time, you are not alone. This is a common problem faced by many small business owners in Britain. According to research, small and medium sized enterprises (SMEs) in the UK have outstanding invoices amounting to almost £67 bn.
If you are among those unfortunate business owners who are wasting their valuable time chasing late payers, automating your payments will guarantee timely payments every time. Late payments not only block your cash flow but also compromise the long-term financial stability you need to grow and evolve.
For many small businesses, direct debit service presents itself as a great way of ensuring regular payment collection while saving valuable time. As a business owner, if you are involved in the tedious task of manually invoicing your customers or spending long hours on your financing reports, this is a solution that will make life easy for you. You can automate your incoming payments and reduce the burden of manual payment administration.
Scheduling direct debit payments on a recurring basis will save you time previously wasted on follow-ups, sending invoices, and other administrative tasks. When payments are due, there is a feature that sends automatic reminders to notify customers when the funds will be collected.
Improved Cash Flow
With direct debit services, you can automate your payments, get paid faster, decrease the cost of doing business, and improve your internal business efficiencies. All of this adds to an improved and efficient cash flow leaving you in a better financial position on any day of the month and more cash in hand, which you can further invest in your business.
You can easily manage all your operational duties and streamline your payments as efficiently as possible. With direct debit, cash flow is improved through the following ways:
- Cash handling costs and hassles are eliminated
- Customer service is improved through convenience and speed
- Outstanding and failed payments are collected as soon as possible
You can easily multitask and cut down on the double-handling of tasks with direct debit. All your customer information can be easily accessed from a single, efficiently designed, easy-to-use and centralized location. The software can be integrated with your existing business software so that you and your staff can perform several tasks at the same time. Streamline your system and software to manage your customer operations seamlessly without any duplication and greater control.
There is a common misconception that direct debit is complicated as well as costly. However, direct debit services are very affordable for small business owners where they only have to pay a minimal fee per transaction that is processed.
One of the best features of a direct debit service is the versatility that comes with it. It can improve the payment system for a broad range of business that usually receives fixed timely payments. Customers are invoiced based on usage and the software also allows flexible payment terms.
If you are a small business owner, switching to direct debit will help your focus on growth without having to worry about payments and transactions.