Collection of payments is always a tedious task for all the different companies, and everyone looks for innovative and better ways of improving their funds collections. Collecting funds on time is needed to improve the cash flow within the organization and only good amount of liquid cash would be helpful in attaining the goals and achieving the targets in short duration of time. Especially for Small and Medium Enterprises where the resources are limited, there is a need for on time cash flow. Direct Debit has made it possible to collect funds from the customers within short duration of time and without any inconvenience. This form is highly recommended for receiving recurring payments.
In Direct Debit, since you are assured about receiving payments on time, you can let the worries about cash flow set aside and focus only on your core business strategies. You will exactly know the date when you will receive the money from your customers and also the amount therein. In case there are any changes made or if the customer is unable to make the payment on time, then you will be informed by the service provider. In order to get the approval of the customers, you will need to enter into an agreement with your clients or payers wherein both the parties agree to pay and receive a certain amount of money on a particular date. The service provider chosen can reduce all your woes and make you enjoy complete liberation in running your business.
Adding clients is fairly simple in the method of Direct Debit. It can be done via Internet or phone if you apply for it through a separate document. Certain documents are necessary for availing the benefits of these services. To start with SUN (Service User Number) is necessary to apply for this facility. If you do not possess this number then the service provider would assist you with acquiring or securing this number. This identification number is necessary to be identified on the bank statements of your customers, because only through this number your customers would get the information about where their funds have been debited to.
The organisations would be assured of receiving complete assistance in set up and installation of all the software relating to Direct Debit. All the organizations would be treated equally by the service provider, despite of what the size or turnover of the organisation is. You will be presented with monthly reports either on paper or through mail to give you complete information about the transactions that have taken place in that particular month.
Direct Debit: An Innovative Way of Collecting Payments