Partner Article

Why choose Direct Debit Payments for your business?

Direct Debits are the most popular payment method in the UK, with almost 70% of customers choosing to pay their bills in this way. A Direct Debit is an instruction the customer gives to their bank or building society, authorising the company of their choice to collect regular payments from their account. These can be for varying amounts, but the company must provide advance notice of collection dates and amounts, informing the customer of any changes.

Why more businesses are turning to Direct Debits

Companies of all sizes are turning to Direct Debit Payments to simplify their payment collection procedures and make them more efficient. So whether you’re a tiny startup or growing, well-established business, consider whether Direct Debits are right for your business needs by asking yourself these three questions:

• Are Direct Debits right for your product or service? Subscription-based products and services work well with a Direct Debit Payments scheme and the number of businesses selling via subscription is on the rise.
• Are your competitors using Direct Debits? Look at your competitors – do they use Direct Debits and is this working for them? If so, maybe this is a sign you should do the same! If your competitors don’t currently use Direct Debits, implementing them could help your company to stand out from the crowd.
• Do your customers want it? Giving your customers what they want is the best way to ensure loyalty, so if you think your customers would welcome the introduction of Direct Debits as a payment option, why not give them the choice?

What are the benefits of Direct Debits?

You’ll probably be surprised by the range of benefits a Direct Debit Payments scheme can offer your company; did you know that 75% of SMEs list Direct Debit as their preferred collection method and the most reliable way to make sure money arrives on time? Here are a few more benefits:

• Retain customers – You want your customers to stay loyal, and Direct Debits can improve customer retention as they’re easy to use, reliable and offer a security guarantee.
• Improve cash flow – Better visibility of regular income can improve your company’s ability to plan and forecast.
• Free up your time – Nobody wants to waste precious time chasing missed payments and using Direct Debit management software automates your collection, leaving you more time to focus on growing your business.
• Flexible collections – The option to vary the amount and date of collections (although you must always advise the customer).
• Win the popularity contest – Direct Debits are the most popular method of automated payment, with 67% of UK bill payers opting to pay by Direct Debit.

What does it all mean?

Direct Debit Payments help eliminate many of the problems businesses face when it comes to collecting customer payments, making late or missed payments a thing of the past. In the current tough economic climate, this could mean the difference between a successful business and one which goes under whilst waiting for payments to arrive. Direct Debits help customers manage their finances and remain on top of bill payments whilst improving business cash flow and ensuring you are paid on time.

AccessPay’s Direct Debit solution

AccessPay’s Direct Debit solution is 100% cloud-based and is ideal for businesses of all sizes; put simply, our software can help your business experience the benefits of Direct Debit Payments.

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