The benefits of using debit orders to
collect fees from customers
Using debit order collection software to proactively collect fees from your customers hold many benefits over waiting for them to get around to paying you.
This article should guide you through the reasons why so many businesses benefit using Direct Debit as a debit order business.
Let’s look into some of the benefits of using debit orders to collect funds:
Increase Cash Flow
When you control when your customer’s bank accounts are debited, you gain control over your cash flow. Why wait on your debtors to make payment when they feel like it? Get paid when payment is due and improve your cash flow, simpler, faster and more effectively.
With a debit order collection service in place for your business, you are certainly going to find that you have a better idea of how much money is collected from month to month. With this knowledge you can better plan future business expenses and projects.
When properly used, debit order collection services can be a more convenient way of receiving fees from your customers. Once your client has signed the debit order mandate, the customer doesn’t have to remember to make payments themselves anymore.
It happens automatically on the date selected by the customer which also assist the customer to better control their finances.
Eliminate Cash Risk
Receiving cash is risky. Moving cash around and handling cash is expensive. Debit orders are the safer option to go with, as all debit order processes take place electronically.
Debit orders are also a more cost-effective solution than any traditional means of collecting and making payment.
Better Budget Planning
When using a debit order service you initiate the instruction to debit your customer’s bank account. You know when you will receive the funds debited with complete certainty and can therefore budget and plan your expenses better.
Automate Debtors Process
The flexibility of the debit order collection system allows for easy automation of the entire debtors process.
On the date that has been selected by the customer, the payment will automatically go off and the money will almost instantly reflect in your bank account.
It’s clear that the use of a debit order collection system holds many benefits over traditional systems. Switching to a debit order collection solution will thus allow you to enjoy the benefits of easier and more cost-effective collections.
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