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Eight Benefits of Direct Debit for Businesses and Customers in UK

Today, more than 80% of UK adults have at least one Direct Debit that they pay each month, making it one of the most popular and trusted methods of making payments weekly, monthly, quarterly or yearly. If you're in UK you need to know its impact on business and customers. Read ON!
Direct Debit Direct Debit is a simple, secure method of collecting regular payments. Today, more than 80% of UK adults have at least one Direct Debit that they pay each month, making it one of the most popular and trusted methods of making payments weekly, monthly, quarterly or yearly. Once a direct debit is set up by the customer, payments are scheduled to be made automatically on a certain date.
For companies, allowing customers the option to pay via Direct Debit helps to eliminate worry about late payments and allows them to place more focus on their business. Here are some of the main benefits of accepting Direct Debit payments.

Improve Cash Flow:


Accepting Direct Debit payments from your customers or clients where possible will help you get a clearer knowledge of your company’s regular income, allowing for improved financial planning and forecasting. Since Direct Debit is highly automated by nature, it allows customers and clients to get on with their day to day tasks without needing to remember to make the payment; as long as the funds are available, Direct Debit will drastically reduce the likelihood of missed payments or non-payments. There’ll also be less time wasted on chasing outstanding funds owed, since there’s less dependence on the payer to cooperate.

Increase Customer Loyalty:


With at least 80% of households in the UK having at least one Direct Debit set up, it’s one of the most popular and trusted methods of making regular payments. It’s no surprise, given the ease of use and security protection that Direct Debit offers to customers. A range of studies have proven that offering Direct Debit as a payment option can be useful for improving customer loyalty and retention.

Automatic Payments:


Direct Debit UK Pounds Thanks to the automated nature of Direct Debit, company owners and managers are free to get on with other tasks, while trusting that the money will be taken automatically. In most cases, a Direct Debit payment request will automatically be put in again if funds were not available the first time around. For businesses, automating the process of making regular payments frees up more time to focus on activities and strategies for increasing revenue and profit.

Peace of Mind:


Using Direct Debit creates stronger peace of mind for both businesses and customers, thanks to the high security of the payment process. All Direct Debit transactions are processed using highly secure technology and protected by the Direct Debit Guarantee. As a result, this ensures peace of mind for customers and clients making regular payments to you when it comes to keeping their financial details secure and protected. To get started with setting up secure Direct Debit services for your clients or customers, check out AccessPay’s Direct Debit service.

Save Time:


The opportunity to make regular payments by Direct Debit can be a highly effective way of saving time, for both the business and the customer. For businesses, using Direct Debit frees up time requesting and chasing up outstanding payments, whilst for customers, using Direct Debit means that they can forget about manually making payments once the money is set to automatically be taken from their account each month.


Be Flexible:


Today, one of the main things that people look for when shopping for new things or purchasing services is flexibility, particularly if they are going to be making regular payments for a product or service. When you allow your customers to make regular payments via Direct Debit, you’ll be able to give them the option to choose their payment date, which can usually be changed at any time. This allows your customers more control over their payment options – something which is necessary for most today.

Clear Arrears and Get Paid:


If you’re dealing with clients or customers who have unpaid bills to your company, chasing the arrears can take up a lot of time and effort. Offering Direct Debit payments gives any customers who owe outstanding fees the option to spread their payments, making it more affordable for them. If you’re dealing with several unpaid invoices, you may want to consider setting up a Direct Debit for a smaller, affordable amount over a certain period of time – usually until the debt is paid off.

Convenience:


Lastly, Direct Debit is simply the most convenient option for your business and your customers. On the business side of things, there’s no need to waste time requesting payments or waiting for money to be transferred, when customers can sit back and get on with their lives while their payment to you is taken automatically at a time that suits them. 
These are just some of the main benefits of using Direct Debit for your business. Would you like to add to this list? Let us know in the comments. #StayInspiredOnTheGO

Copyrights © 2018 Inspiration Unlimited eMagazine


Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 31st March 2018.

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