Research shows that about half of small business invoices in Australia are paid late. This has serious consequences for cash flow. Many small businesses are seeking automated payments using a Direct Debit platform.
What Is Direct Debit?
Direct Debit is a system that allows the automatic withdrawal of funds from a customer’s bank account for deposit into a business’ bank account. This gives business owners a reliable way to receive payment on time and cut back on billing.
Direct Debit Processes Payments on Time
By using Direct Debit, payment collection is automated. Your customers will not miss payments.
Reduces Administration Time
Automating payments saves on expensive and time-consuming admin work. With Direct Debit, all payments will be processed directly from the customers’ bank accounts. No verification is necessary.
Some people believe Direct Debit payments entail a regular fixed amount and schedule. This is not true. The amount and frequency for charging each customer may change. You can make adjustments throughout the year or for different services. Simply alert the customer in advance to any changes without needing new authorization.
Safe and Secure
Direct Debit’s safe platform lets customers cancel payments and apply for refunds. This makes them feel more secure. In 2016, about 36 percent of non-cash transactions were made using Direct Debit. This shows how much customers trust it.
Direct Debit through PayAdvantage can be integrated into platforms your business is already using. There is no manual transferal, which means less admin work.
How It Works
Direct Debit is simple. Customers complete a Direct Debit request form issued by your business to authorize you to take payments from their bank. The form can be accomplished online, over the phone, or on paper. Once payments are authorized, they do not need any further action from the customer. Payments usually clear in three working days.