Direct Debit is the most flexible payment method around. A bold statement, sure. But one that we at DFC believe wholeheartedly. Here’s why:
Unlike its more rigid cousin, standing order, payment amounts and frequencies can be scaled up and scaled down with Direct Debit. Whether your fitness class is taking a break for the Christmas period or you’ve used less electricity at home this month, your Direct Debit instruction can accommodate this without the kerfuffle.
Now, we will admit that Direct Debit of yore was restricted in its abilities. It was expensive to set up and was reserved primarily for larger corporations (see now how smaller businesses can benefit from DD). But in our digital, paperless age, Direct Debits are painless. Organisations can gain a SUN far more easily, and their customers can set up a Direct Debit at the drop of a hat.
Direct Debit spreads costs over a set period, most commonly a year. This is music to the ears of your accounts team, who can use this information to work out exactly how much income is coming in and when. Budgets can be adjusted according to monthly cash flow and there is much more room for damage control should problems arise.
Time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Direct Debit is one of the most painless revenue resources to manage because it’s automated. No paperwork, no files, no hassle. It’s important to monitor Direct Debit finances, but beyond that, your time can be freed up to focus on other areas of the business. Hooray!