Collecting payments as a small business isn’t always easy and yet successful payment collection has a huge impact on cash flow. Simply, late payments and delays can cause big problems for a small business. However, switching to Direct Debit can help. Direct Debit makes payment collection easier and quicker. Not only does this allow you to focus on other aspects of running a small business, but it also reduces the chances of cash flow problems.
A Direct Debit is a method of payment, one that’s extremely beneficial to a small business. As a Direct Debit is automated, it is a very efficient way of collecting payments from customers. Whether you’re a brand new company or an established small business, a Direct Debit is likely to be the top payment method for you to use.
Though a Direct Debit may sound similar to a Standing Order, there is a key difference. With a Standing Order, the customer controls the payment. However, with a Direct Debit, it is you who has the control. Once the customer has agreed to the payment, you are able to collect the funds automatically and at a time that suits you.
There are a number of fantastic benefits of using Direct Debits, with the main benefit being just how quick and easy it is. By allowing you to draw payments directly from your customers, there’s no need to worry about late or delayed payments. Instead, everything is easy to control. For example, cash flow can be controlled by fixed payment schedules that are set up in advance. Another of the key benefits of using Direct Debits as a small business is the reduction in administrative costs. There’s less paperwork, no complicated software and fewer overheads.
Though most people will have paid for a product or service via Direct Debit, very few businesses know how to go about getting started with accepting payments in this way. If you’re not familiar with how Direct Debits work for a small business, it’s best to seek the help of those who do. At Debit Direct, we’re on hand to help you through the process. Find out more about collecting Direct Debit payments for you’re small business by getting in touch. Contact Debit Direct today on 03300 88 1232 or via the online contact form.