Direct debit, also commonly referred to as a pre-authorized debit, is a means of collecting payments from your customer by automating the transfer of the buyer’s money directly from their bank account, in contrast to processing a one-off payment via cash, direct debit or credit card. For the last 10 years, this type of business payment mode has tripled in volume.
If you are running any of these 4 businesses listed below, direct debit saves money and time as you would be leveraging from these benefits:
1. Health, Fitness & Exercise Centers
If you are an owner of a fitness center, you would know that collecting monthly payments is one of the most nerve-wrecking times of the month. Every now and then, someone must have an excuse for late payment, (e.g: pay cheque is not banked in yet, lack of funds, etc.) which then leads to several days of delayed payment. After a few days, they might even forget to pay and you would then have to remind them about it again – which would then lead to even more delays and effort on your part to simply get paid. So, you wait again, hoping for the payment to arrive.
Members of your fitness center are like your friends, and the last thing you want to do is commit a customer service faux pas by chasing them about making their payments before their spin class. At the same time though, every business owner’s main prerogative is to ensure that monthly membership payments are being cashed in regularly so that your own bills can be paid in time.
By using auto-recurring debit payments, you no longer need to bother clients about monthly payments. Direct debit saves money and time when every month on a fixed date, payments are automatically withdrawn by the direct debit company and deposited into your business bank account. Voila – you now have more time managing your fitness business and less time collecting payments.
2. Law Firms & Legal Practices
Legal retainer fees can be quite a large sum to manage. Getting monthly wire transfers from client bank accounts can be exorbitant and processing credit cards are even more so.
Direct debit saves money by collecting monthly retainer fees for law firms and allows these businesses to take advantage of the automated billing system to ensure that payments arrive consistently every month.
3. Day Care & Childcare Facilities
Running a childcare center is a very hands-on and time-intensive business. Going after parents who are not paying their monthly childcare fees on time is the last thing you want to do when you are tending to their kids all day. On the other hand, if your clients aren’t paying, your cash flow suffers and as a result, your business is at risk.
Direct debit saves money and time by collecting recurring payments from your clients’ bank accounts. Time is saved and you will be able to spend time organizing new marketing plans and getting new prospects, instead of hunting down overdue payments.
4. Landlords & Property Management Companies
Frequent inconsistencies in rent payment time are a big concern to property management companies. When the financial stability of a business depends on well-timed payments, auto-recurring direct debit saves money and time as it is the best choice out there.
Signing up tenants for direct debits is pretty easy too. All they need to do is fill up a direct debit authorization form which allows the property management company to withdraw monthly rent payments automatically on an agreed upon payment day. Such method is beneficial to everyone as direct debit saves money and time as landlords get to enjoy a smooth cash flow and tenants are relieved of their rent-paying duties.
Ezypay has pioneered direct debit technology in Australia since 1996. If you would like more information about how award-winning Ezypay direct debits could help give you more billing options for start ups please contact our sales team today.