For a business that is just getting started, juggling multiple tasks and responsibilities, such as ensuring a smooth transfer of information and a great service for the clients, can sometimes be too much to handle. Multitasking gets harder when the company steps into the business world without knowing what’s best practice.
Not every tactic that is popular with larger corporations works for smaller ones, which is why it is vital for a small business to be more careful when deciding on the services and service providers they wish to use. One extremely crucial decision that will have an impact on the future of a small business is the kind of payments technology it will use.
For a smaller business, the use of direct debit services is more beneficial as compared to any other mode of payment.
What Are Direct Debits?
Direct debits signifies exactly what is implied by the name. It is a payment process where a bank allows a third party to transfer payments from an account (with the knowledge of the owner) at pre-determined dates for services rendered by the third party.
Why are Direct Debits the Path for Small Businesses?
- Enhanced Cash Flow
Small businesses cater to a smaller clientele, and hence have a smaller pool to derive their incomes and profits from. Direct debits ensure a reliable and risk-free flow of cash. Direct debit payments mean safety for smaller businesses. This is because even a slight financial hiccup can lead to a big disaster for them.
As an owner of a small business, you will be in control of your payments and you can focus on other segments of your business without having to worry about payments not coming through.
When using direct debits through a respectable service with efficient processes, you’ll reap the benefits of a better cash flow with easy budgeting. AccessPay is one of these services whom aim to fully transform your cash flow. With an improved customer service and easy budgeting, you’ll quickly see the benefits of timely payments- meaning you don’t have to go through the hassle of chasing invoices.
- Improved Efficiency
For businesses operating on a smaller scale, receiving payments on time is important. If you are receiving payments through a cheque then you will have to be constantly waiting for them to be processed and cleared. Direct debits are paid into your company’s account directly.
- Strengthened Flexibility
As the owner, you will of course be more comfortable if you decide the amount of payment and the time, with the option of changing them in the future. The direct debit mode of payment makes it easier for you as you will oversee all these factors.
- Reduced Costs
Not every client is prompt in paying for the services they have utilized, and trying to get the payment can be a big hassle. Putting together invoices and going after clients for the payments can end up being costly, and the amount is especially significant for a business running on a small scale.
Businesses have started to strategies about lagging with their payments for as long as possible, and it is therefore necessary that you do not get pulled into the mess. Direct debit payments ensure that the amount decided upon is delivered to you on the decided date and time, without any glitches to postpone or slow the process down.
- Reduction In Confusing Paperwork
Financial paperwork can get quite messy, especially if you are the owner of a small business and do not have that many separate departments to take care of different aspects. Direct debit ensures a smooth, electronic transfer of payments that is done from one bank to another. There is no requirement for paperwork that is too costly to put together and instil.
- Easy to Install
There are no complications when it comes to activating the direct debit payment method for your business. The software used is simple and does not require any technicalities. Any updates are easy to take are of as well.
A start up or a small business does not have the access to advanced resources or technology nor do they have a cushion against risks. Thus, it has to rely on better and clever ways of running smoothly and ensure a safe and secure payment method. When it comes to payments and transactions, direct debit is a service that is most suited to the needs of such businesses.