Many businesses have never considered Direct Debit or Payment Plans as a necessary part of their business. Large invoices were typically paid in full and customers generally had the cash, but this isn’t always the case anymore. Your business performed the service or provided the product and deserves to be paid in full, promptly. Sticking to rigid payment terms may not be the smartest move.
You may have noticed that your customers no longer have the funds available to pay a large amount in full. You can keep pestering them, but chances are that nothing will change. You have legal options; however in this environment there is no way this will get you paid quickly. You might not get paid at all! That’s not even considering the effort, stress, and cost of going down that road.
It’s a good time to reconsider your approach to invoicing and offer a payment solution that will ensure you get paid, improve your cash-flow, and allow customers to continue buying your product or service. Payment Plans allow you to break down large invoices into any number of smaller payments that customers will be able to pay. There are a heap of other benefits that you may not have considered as well:
Your customers will love you!
Customers will really appreciate that you have understood their needs and given them the opportunity to continue buying your product or service. Large purchases are going to be very difficult for people now; however budgeting over a larger window is very achievable. Keep trading with a simple change!
Ensure you actually get paid.
If you are going to be forceful and demand full payment upfront, then you might just be shooting yourself in the foot. You can set up a payment plan over any period. Simply splitting a payment into two instalments may be all that is needed to have that much needed cash come through.
There will be a lot of changes happening for at least the next six months. Spreading your income out over a longer period will not only help you survive this crisis, but also improve your budgeting. Retaining employees and the ability to pay for new stock will be much more achievable. This strategy works really well with the assistance our Government is offering business at this time too.
Share the love.
Switching over to payment plans is easier for some than others. Many businesses have suppliers and contractors to pay and desperately need that money. Do your best to budget for Payment Plans and talk to your suppliers and contractors about what the changes you are making. Everyone is on the same page and will most likely be able to accommodate you in the same way you are accommodating your customers.
New business will come.
Don’t be afraid to boast this service to your customers. People want to keep on living and if they are aware that buying your service or product is still an option for them, then they may just make that decision.
Change for good.
Look at the success of many “buy now, pay later” services. Customers love this and continue to choose this option for purchases. You may just find that Direct Debit becomes an integral part of your business. With Direct Debit you don’t need any complicated forms, credit checks, and delays. Nor do you have to lose a big chunk of your sale in fees. You verify your customer and set up the terms there and then. You are in control.
Automated payments, customer notifications and more.
Direct Debit instalments and details can be managed and tracked online helping you stay in control. Receipts, payments, and re-debits are all managed for you automatically in a way that best suits your business. Customers can use credit or debit cards and payments can be adjusted to suit.
Start offering payment plans today
Pay Advantage offers Direct Debits as part of our cloud-based payments platform. With our platform you can also offer customers the option to pay in full using credit cards or BPAY at some of the lowest rates around. There’s no subscription or setup costs, so sign up and get started today.