We all know how Direct Debits benefit us as consumers, but they can offer all kinds of advantages to business owners too. From the little things like saving you a few minutes here and there to bigger things like improving your company’s cash flow, the perks of using Direct Debit collection wherever possible make it well worth considering as part of your strategy.
So let’s start with cash flow.
Using Direct Debits means you’ll always know in advance exactly when funds will be cleared and in your bank account, and that greatly reduces the room for oversights and cash flow issues within the business. It’s also good news for the members of your company Accounts team, as once your customers have set up their Debits to ensure regular and timely payments they’ll have far less need to chase late payments and send out reminders when they’re outstanding.
Customer loyalty and retention
If you’re focusing on ways to see an increase in customer loyalty and retention, then Direct Debit collection can help. Once a Debit is set up and things are plain sailing on the payment front, many customers are happy to stick with one supplier and will be less inclined to move to a competitor. In short, it’s easier for them to continue paying the company they’re familiar with and that they have the Debit set up with. Don’t forget, the Direct Debit Guarantee provides protection for both you and your customers, so in the rare event that there’s a problem, you’re both covered.
Thinking about the environment?
If your company ethos includes consideration for the environment then there’s another advantage to using Direct Debits, they make it far easier to limit the amount of paper you use and store throughout the company. The more you rely on the Direct Debit scheme the easier it is to go paperless, and that can only be a good thing.