Running a company is not a simple task; and waiting for payments from customers can be one of the biggest headaches for any small business owner. According to a study, small setups in the UK chase £50 billion of late payments every year though it is not all doom and gloom. Direct debit is a simple solution that can help reduce the anxiety of getting paid on time.
The good news is that Direct Debit can also come handy in running smooth operations of your small business. It works in the same way you use it to pay off your monthly bills, helping you make sure that you receive your payment on a mutually set date.
With a direct debit set up for your business, you can eliminate the need for your customers to see, authorize, and clear your invoices. It means you do not need to keep waiting for your customers to make payments upon getting a new bill since direct debit will make the option of automatic payments possible.
You can use direct debit for small business set up to ensure regular and recurring payments, making it an excellent choice for your venture. It can make life easier for both the payer and the payee. If you have clients with regular billing, direct debit ensures timely payment. It will also save your customers from the hassle of performing extra admin, which they will always appreciate.
Businesses accepting payments in monthly or quarterly installments can also benefit from direct debit features. If you offer products or services on installment bases, setting a direct debit will make sure that you do not fall behind on your payments.
Likewise, a subscription-based business can also look to set up a direct debit to prevent the hassle of customer churn.
Setting up a direct debit with your customers allows you to collect your payment from their bank. When you have payment installment coming up, you can notify your customers telling them the amount and date of payment. Direct debit will make the remittance done automatically.