Direct Debits keeps you in control of your financial matters. Once authorized, you can collect monthly payments on time without needing your customers to do anything extra. It will also eliminate chasing customers for payment by ensuring you get paid on time.
1 .Reduced Admin time
After you have set up a Direct Debit, the whole process of payment becomes automated. You can automatically take and track monthly payments, which can significantly reduce the time needed to manage them with other payment methods.
2. Worriless Payment Collection
If your company collects fixed payment amounts at regular intervals, setting you Direct Debits Payments will allow you to stay worriless over this hassle. You will automatically get paid every time a payment is due without you or the customer need to do anything else.
3. Cost-Effectiveness & Savings
Making payments through credit or debit cards can cost you 3-5 percent per payment. With Direct Debit, on the other hand, you can save your money by paying only 1% per transaction for up to a maximum of 4 pounds for domestic payments.
4. Reduced Potential of Payment Failure
Almost 5% of card payments fail every month because of card expiration or cancellation. Direct Debit Payments work with your bank details, which rarely change or expire. Eventually, the chances of payment failure are less than one percent.
5. Flexibility of Payments
Direct Debit allows you to change the frequency and amount of payments without needing to get reauthorization from your customer. It means you can get paid with variable amounts or even increased prices whenever you need to with no administrative hassle.
6. Improved Cash Flow
Late payments can impact the cash flow of your business. Seeing that you aren’t sure when to expect to get paid, you cannot decide when to pay to buy new stock or pay bills. Direct Debit enables you to be aware of when you are getting paid, allowing you to make your business plans accordingly.
If the above benefits interest your business, visit https://www.eazipay.co.uk/direct-debit/uk to sign up for a Direct Debit now.