An instruction from a customer to their bank that authorises you to collect money from their account.
With a Direct Debit, when the payment amount, frequency or payment date changes, you can claim the new amount on the date of your choosing, as long as you have informed the customer in writing in advance.
When a Direct Debit bounces or is cancelled, the bank will notify you a day after collection has been attempted.
An instruction from a customer to their bank to pay a fixed amount to you on a regular basis.
If you wish to change the amount, frequency or payment date, you would be required to contact your customer and request that they contact their bank to make the necessary changes. In the meantime your customer may well be building up arrears which would then require further adjustments to their payments.
When a Standing Order bounces or is cancelled, it can take over a month before you become aware of the fact, and you have then to chase the missed payments or, if cancelled, convince your customer to set up a new Standing Order.
Benefits To You
Improving Cash Flow - Know exactly when cleared funds will be in your bank account making cash flow issues a thing of the past.
Saving Time and Money - Your book keeper will spend less time mailing reminders and chasing errant payers.
Streamline Your Banking - Only errors and non-payments are reported, so you can carry out reconciliation by exception.
Improve Security - Built in safeguards protect both you and your customer through the Direct Debit Guarantee.
Customer Loyalty - Instead of looking for new suppliers, most people find it easier to simply continue paying by direct debit.
Clear Arrears - The flexibility of direct debit allows you to offer your customers easy ways to spread the cost of their payments.
Reduce Paperwork - Converting your collection method to direct debit will dramatically cut down the amount of paper lying around your office.
Benefits To Your Customers
Peace of Mind - Your customers have the peace of mind knowing their bills are being paid automatically and they will never miss a payment or receive late payment penalties.
Convenience - Direct debit is convenient and saves time. Your customers can forget about writing and posting cheques.
Security - Direct Debit is widely known as the most secure form of payment and instances of fraud are virtually unheard of.
Budgeting Made Easy - With Direct Debit, customers can control their budget and prioritise your payment.
Customers Trust Direct Debit - The Direct Debit Guarantee gives your customer the complete reassurance of knowing they are protected by a host of safeguards.
We set it up and run it for you and charge a percentage of rental/subscription income collected each month of 1 – 2% depending on the size and complexity of the transactions.