Why you should start using direct debit in your business

20th September 2021 | News

A massive issue for small businesses, indeed, all businesses, is being paid on time. Every business owner knows the frustration of having to chase up customers for money owed to them. Thankfully, raising invoices and hoping for the best is becoming a thing of the past with the rise of direct debit as a popular method of paying for services.

Lots of companies are taking advantage of technology like GoCardless and other similar services to ensure they have more control of when their customers pay.

Direct debit essentially involves collecting payments automatically from a customer’s bank account. Having a direct debit in place ensures businesses are paid on time and in full and avoids the discomfort of chasing clients for money.

Once the direct debit mandate is completed, that should be the end of it for both customer and business owner. The client approves that a business can take money from their account, and the business does so in accordance with the agreed upon charges.

Direct debit is not only popular with business owners, but it is in fact becoming a popular option with customers. Realistically, “life happens” and even the most organised and honest of customers can simply forget to make a manual transfer. Having a direct debit in place removes this and ensures customers are not embarrassed by debtor chasers.

Direct debit is also a very safe and secure method of payment. Not to mention cheap, in that card network costs do not need to be factored in.

In summary, direct debit is the best option for both businesses and customers. It is usually instant, secure and removes the hassle of both chasing and being chased for payment.

If you have any questions relating to the above, feel free to contact our offices on 0161 399 0121 / 0151 303 3112 or by email info@williamsoncroft.co.uk.

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

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