Late payments are the bane of every small business owner’s existence. And unfortunately, there is no easy way around it. The majority of small businesses in Australia have to deal with late-paying customers at one point or another.
Late payments can have a serious impact on cash flow for businesses. Given cash flow is one of the main reasons that small businesses fail, rectifying the late payment debacle needs to be a high priority for them.
Whatever small businesses are currently doing, isn’t solving the problem. They need a more efficient and effective method to collect their payments on time. The savvier small business owners are turning to direct debit as the answer.
Direct debits are payments that are automatically collected on a specified date from the customer’s bank account or credit card.
A direct debit payment system, such as the one Pay Advantage provides, ensures on-time payments, improves cash flow and helps kees Australian businesses going. Pay Advantage automates a lot of the painful parts of managing direct debits. Processes such as re-attempting debits, dealing with missed payments, messaging and following up with customers, and sending reminders about upcoming payments are all automated so business owners have more time to run their business.
Setting up and managing a direct debit by yourself isn’t as simple as it may sound. An efficient direct debit setup can take time and money, not to mention the processing and admin work that comes with it. So, what should business owners do?
Having your payments sorted with a direct debit system lets you focus on continuing to build your business, without worrying about chasing customer payments. More predictable cash flow management will give you the confidence to take your business to new heights.