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Top Things Direct Debit can Do for your Business

Research indicates that an average small business is owed more than 63,000 in outstanding payments. This can have a big impact on their cash flow, which means they have to spend extra time, resources and money for chasing payments. This can keep the business away from other essential work and growth plans. Therefore, being able to automate payments via direct debit can be extremely beneficial for small businesses. The funds are pulled automatically from your customer’s bank account when a payment’s due, allowing businesses to be paid in a timely manner.

Some of the top perks of direct debit for small business are:

  • You get paid on time

The biggest perk of direct debit for small business is that the entire payment collection process is automatically taken care of. Hence, there will be no missed payments from clients as you will be able to collect the payment directly when it reaches its due date. This means no chasing clients to demand payments and leads to less disruption.

  • Enjoy full control

Processing payments can be a time consuming and hassling task. Standing orders or bank transfers require you to keep an eye on your bank account whereas check payments have to be cashed. Credit and debit cards may be quick, but they are costly. With direct debit, payments are automatic so you don’t need to lift a finger and can have full control of the funds.

  • Gives you flexibility

Direct debit for small business can also give you flexibility because you can charge fixed as well as variable amounts. This can easily accommodate any changes in fee or for one-off projects. You just need to notify your customer in advance and then collect the adjusted payment without needing any authorization. The frequency and date of payments can also be changed.

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