If you have experienced the struggle of collecting payments from your customers, this article is for you!
If you raise sales invoices for the same customer frequently, you will understand that time can be wasted trying to link the payment to the correct invoice being paid. Cash flow problems can also occur when customers pay late.
If the above applies to your business, or you would like to have more security over your incoming payments, you may want to consider using software to collect your sales invoices via direct debit. It is as simple as emailing your customer a link to complete a simple Direct Debit mandate. Once the mandate is in place, you can raise an invoice and automatically collect payment on the due date. Don’t worry, the customer gets notified of the invoice and given notice of the payment being taken so there are no surprises!
Using software to collect incoming payments by direct debit does have its benefits:
- Be in control of when you get paid and cut out the stress of chasing unpaid bills.
- Predictable cash flow allowing you to properly plan your future ability to spend.
- Easy and quick set ups for direct debit mandates.
- If you’re already using Xero, then most of the apps integrate directly meaning payments will automatically reconcile against invoices saving you administration time.
- Offer customers payment plans to settle old invoices over a set period.
There are a number of apps that you can use for direct debit collection. Please contact our digital team on digitalteam@bromheadco.co.uk and one of our experts will be in contact to go through some scoping questions. From there we can advise the most suitable software, the benefits for you and any of the associated costs.
