Partner Article

Direct Debits – The ideal payment solution for businesses in the UK?

Every business owner knows how vital cash flow management is when it comes to running a successful company.

Extending credit to customers and dealing with late or missed payments can damage your firm’s cash flow faster than you might think, and in this frenetic, fast-paced modern world, it can be hard to find time to chase overdue payments. This is a huge, on-going concern for many business owners, particularly in the current tough financial climate. Luckily, Direct Debit Management is the perfect way to ensure that late and missed payments need never be a concern again; here’s how.

How Direct Debits can help businesses

“Direct Debit Management can make your organisation’s payment collection more efficient, manageable and more cost effective, which is why UK organisations of all sizes choose it as the preferred method for collecting regular payments from both businesses and individuals.“

This is a quote from the Banker’s Automated Clearing Service (Bacs), and we couldn’t have put it better ourselves. Direct Debits are increasing in popularity with businesses of all sizes and offer a number of benefits to companies. Here are just a few of the benefits you can expect when you set up Direct Debit payments as an option for your customers:

• Retaining customers – Did you know that Direct Debits can actually increase customer retention? They’re secure, reliable and easy to use and the preferred payment method for many customers.
• Improvements to cash flow – As all business owners know, your cash flow is your firm’s life-blood. Direct Debits can help you to forecast and plan for the future by improving visibility of regular income.
• Save time – We all wish there were more hours in the day, but by automating your Direct Debit collection with reliable management software, you’ll have more time and resources to dedicate to other aspects of your business, such as generating more revenue!.
• Flexibility – Direct Debits are a flexible payment solution, so collecting variable amounts on different days is simple.
• Happy customers – Pleasing your customers is what running a successful business is all about. Direct Debits are a popular payment method that will ensure your customers stick around.
• Save money – Compared to the costs of processing debit or credit card payments, Direct Debits are a low-cost solution; Direct Debit UK payments cost less.

Making late or missed payments a thing of the past is a goal which can easily be achieved with good Direct Debit Management.

How does eliminating the hassle of error reconciliation whilst also speeding up payments sound? Set up Direct Debits and you can achieve all this and more.

Did you know that more than half of all bill payers choose Direct Debits as their preferred payment method? These figures are only set to increase in future, so implementing an automated payment scheme will give your business an edge over the competition when it comes to the crunch.

This was posted in Bdaily's Members' News section by Ali Moiyed .