Owing to outstanding payments can impact the cash flow of your business. It needs you to spend extra money, time, and resources to chase payment and leaves nothing for the growth plans set for your business. Therefore, many companies now look to automate their monthly payments with Direct Debit so that you can automatically receive payments from your client’s bank account when a payment is due. Direct debit also saves much of the admin work required for other payment methods, making it a hassle-free approach to control cash flow.
Once you set a direct debit for your business with eazipay, it becomes easy to manage payments every month. Let’s look at some ways Direct debit can be beneficial for your business.
Setting up direct debit allows you to benefit from an automatic payment collection process. It also ensures that your clients do not miss paying you again. You can still use regular payment terms and collect the payment direct from their bank accounts. It means no awkward chase-up messages and minimal disruption.
Processing payments tends to be a heavy admin task. Cheque payments, standing orders, and bank transfers require careful monitoring of your bank account to confirm payment receipt. While debit and credit cards are a swift payment ways but can be expensive and non-reliable. A direct debit set up is an easy and automatic way which will direct the payment from your clients’ account to yours without a reminder.
Direct debit allows you to receive both fixed and varied payment amounts. Depending on your requirements, you can enjoy flexible payments or change the date and frequency of the payments. However, it is necessary to inform your clients in advance to be able to collect the adjusted payment without requiring further authorization.