Customer collections - Setting up a Direct Debit facility

Are you currently collecting payments via Direct Debit for your business? No? Well, why not? In this article, we discuss the major benefits for businesses collecting payments via Direct Debit and how it has helped them both financially and none financially.

Firstly you have to consider the setup of Direct Debit, can you afford it? Is it worth your time and effort? Will it actually benefit my business? The simple answer to this would be, yes!

Why choose Direct Debit?

Over 85% of people in the UK said they feel happy paying via Direct Debit due to it being one of the most reliable payment methods around. This is all down to the stringent security checks and vigorous processes the payment files have to go through, maintaining a high level of security to give you peace of mind that your payments are being processed securely. In terms of bettering your business, offering Direct Debit as a means for your customers to pay you makes your company look more professional which could lead to more sales as you are seen as a reliable business.

“It has been a great aid to my business growth” Jayne Clark, Jac Skinbar

Some of the reasons people prefer Direct Debit to Standing Order is that Direct Debit offers greater control over payments. You are in control of the amounts and collections so you are able to more accurately forecast cash flow. Any business knows that it is crucial to have accurate outlooks of where the company will be financially and with customers paying via direct debit you would be able to do this more accurately.

Benefits to Direct Debits

Obviously, there are benefits to your customers too. Besides the fact they are given another payment option, it also offers them a secure payment method. Customers have trusted Direct Debit payments for many years and this is why so many companies are having it as a collection method. As setting up Direct Debits is quick and easy this saves the customer time, and in this day and age where everything has to be done quickly, then this appeals to them. With all this extra time on their hands, they are then able to start thinking about planning finances. The regular payments allow them to see when money is coming out and this enables them to budget accordingly meaning they too can relax.

So a quick and relaxed payment method for the customer, and regular amounts coming into your business so you can easily forecast. Direct Debit sounds like a no brainer to me!

How do I get set up a Direct Debit facility for my business?

In order for your company to operate a Bacs/Direct Debit service in-house, or to take advantage of a Bacs Approved Bureau service, you will need to obtain your own Service User Number (SUN) from your sponsoring bank.

Applying for a SUN from the bank can be a complicated process and very time-consuming. Don’t let this put you off though! Here at Interbacs, we can help you every step of the way in order to make it as hassle-free as possible. Our expert team can guide you over the phone or via email for any questions you may have about the application process.

What if I can’t get a SUN?

Our best advice would be to contact your relationship manager at your bank. It is them who hold the real answer as whether you will be eligible to obtain a SUN.

Don’t worry though as here at Interbacs we are able to offer services to you even if you have not been presented with a SUN. Click to find out more about our Facilities Management Service.

Contact us

Speak to one of our sales consultants today by calling 0161 667 0758 or email us at sales@interbacs.com and they will figure out what you need to get set up and tailor a package to your budget and requirements.

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