When to Set Up Direct Debit for Your Small Business

Payment collections can be a nightmare for any small business. With Direct Debit set up, you can make sure that payment collections are done on a set date. It will also remove the need for your customers to see, approve, and pay invoices you send.

When you set up Direct Debit, you do not need to wait for your clients to approve payments upon receiving a new bill because the payment is collected automatically. You can use Direct Debit to ensure regular and recurring payments.

Here is when your small business may need to take advantage of this automated payment method.

The Direct Debit for your small business can make your and your clients’ lives easier. If you need to collect payments regularly, Direct Debit can make sure you get timely payments as well as save your clients from carrying out any extra admin.

If your business offers products and services for payment in installments, you would want to make sure that you do not experience any glitches or delays. In such a case, Direct Debit can serve as the best payment option for your business. Likewise, if you are running an ongoing subscription-based business, it may be a wise decision to insist on Direct Debit so you can prevent customer churn in the long run.

Setting up a Direct Debit is the best way to save time and effort. It means you do not need to worry about important dates of paying energy or phone bills or paying fines for late payments. With this option, you can also save lots of money on utility bills because electricity and gas providers offer you a discount when you pay through Direct Debit. It is a safe option to pay since the bank will pay any incorrect payments that are made incorrectly.

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