One of the biggest problems for any small business is having to wait for payments from customers. Small businesses have to chase payments and send reminders to their clients, which is time consuming and a big hassle. Luckily, there is one simple adjustment that businesses can make for reducing the stress and hassle of getting paid and this is called direct debit. Similar to how direct debit is used for personal bills, a small business can take advantage of it and ensure that their payments will be made by the client on a set date.
With the use of direct debit, there is no need for the customer to check, approve and action any of the bills or invoices they are sent by the business. Thus, small businesses no longer need to wait around for their clients for authorizing payments when they receive a new bill because the payment will be made by their bank automatically. Hence, you can eliminate the frustration associated with having a forgetful customer. If you are thinking about how to set up direct debit for my customers, then you will be pleased to know that you can do it one of two ways.
You can either use the bank directly for doing so, or you can also make use of third-party direct debit providers that have popped up nowadays. There is some paperwork involved, as the customer will also be required to fill out a form called mandate, which will authorize their bank to make the payments. This ensures that small businesses are able to receive their payments quickly and in a timely manner and the customer doesn’t need to worry about clearing a payment individually. This solution is becoming increasingly popular amongst small businesses, as it can help prevent cash shortages and ensure quick payment recovery.