If your business collects regular payments from customers, you may want to consider the option of using direct debits. This method is regarded as a great solution for businesses that invoice regularly because direct debit can make life easier for the business and their clients as well. When you have to bill clients regularly, direct debit can help ensure that you are paid on time and it can also save your customer from having to deal with any paperwork regularly, which is undoubtedly beneficial.
Moreover, small businesses that are offering payments in installments can also make use of direct debit. This is a way to ensure that your customer doesn’t fall behind on their scheduled payments. Likewise, businesses offering an ongoing subscription service can also use direct debit for getting their payments, as it eliminates the need for the customer to make the payment manually every time and saves you from having to send reminders. There are all kinds of benefits that direct debit can offer to small businesses. It is regarded as a manageable and efficient method for collecting regular payments and is cheaper than other methods.
It saves businesses from having to perform reconciliation and also simplifies the process of cash flow management because can control when payments will be cleared into your account. But, the question is how to set up direct debit for my customers? Fortunately, the process is not very complicated, which makes it convenient for everyone. You can get in touch with your bank and inform them that you want to use direct debit and then sign up with a provider. Your customers will also have to fill out mandates at their respective banks, thereby authorizing you to take payments. The cost of direct debit will depend on the provider you decide to use.
