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Why Should I Choose Interbacs for Direct Debit Management?
Payment systems that are simple for all stakeholders to use are the lifeblood of businesses. This is because the more complex type of payment system is for businesses and customers, it is likely that payments may stall and create inconsistent finance flows.
More businesses are now using Direct Debit management services due to the fact that the system is clear, accessible and robust. Businesses are attracted by the uncomplicated cost structures, forecasting capacity and error reduction benefits.
In light of the fact that in 2022, small and medium-sized enterprises (SMEs) in the UK were typically owed around £22,000 each in late payments, it makes sense that companies are turning to Direct Debit management services to support a more reliable cash flow.
Contents
- - What is a Direct Debit facility?
- - How do I set up a Direct Debit facility?
- - 3 key benefits of Direct Debit management.
- - Why should I choose Interbacs Direct Debit management?
What is a Direct Debit Facility?
A Direct Debit facility enables your business to set up a cost-efficient and simple process to collect payments from customers. At first, the customer signs a document called a Direct Debit mandate which then allows the named business to take payments directly from the customer’s account.
A key benefit of this approach is that for those businesses that set up regular payments, offer subscription-based services or payment plans, a Direct Debit facility seamlessly manages these payment options. Plus, Direct Debit is the only payment method that allows organisations to take agreed payments from customer accounts, rather than customers sending it themselves.
Recent statistical data has revealed that the UK B2B (business to business) payments market size was valued at $89.05 billion in 2022 and is projected to reach $200.78 billion by 2031. It’s now common practice for most businesses that want to grow their business and create simpler processes for their customers to work with a Direct Debit management service.
How Do I Set Up a Direct Debit Facility?
Every Direct Debit management service will be organised in different ways, but many will have standard operating procedures to ensure your Direct Debits are approved and collected on time.
The basic steps of setting up a Direct Debit facility are:
- - Select the right Direct Debit management service for your needs. Research official and experienced providers who offer efficient customer service and have a proven track record.
- - Work with a Bacs-approved bureau. Bacs is the organisation responsible for Direct Debit and Bacs schemes in the UK which helps you stay compliant and feel secure.
- - Follow your chosen Direct Debit management service’s registration process. This should be fairly straightforward and will require details about your business and banking information.
- - Obtain customer authorisation with explicit consent using a Direct Debit mandate form. Customers need to know the essentials, such as payment date, amount, and scheduled payment frequency.
- - Submit customer details to your Direct Debit management service. Ensure all customer information is correct and send the mandate forms promptly for a smooth setup.
- - Test your Direct Debit system with your provider so that you know the process works efficiently and customers are not exposed to any issues.
3 Key Benefits of Direct Debit Management
- Reduced costs
As a safe and reliable way to make payments, online Direct Debits ensure lower administration costs.
- Minimised rejections
Your Direct Debit management service should validate all Direct Debit account information with the UK Industry Sort Code Directory (ISCD) to ensure collections are accurate and the data supplied is correct.
- Improved efficiency
With a Direct Debit management service, you will streamline your payment streams by having all of your transactions monitored and managed in one central place. Not only does this eliminate the need for time-consuming manual payment tracking, but it also increases the accuracy of payment data collection.
Read about motr of the benefits in our blog; what are the benefits of direct debit management services?
Why Should I Choose Interbacs Direct Debit Management?
Put simply, Interbacs Direct Debit management services are here to help you secure a smooth, seamless Direct Debit payment solution that is user friendly with a simple onboarding process. There’s no doubt that when you work alongside a Direct Debit management software, you are focusing on growth goals and on improving your financial flows.
In addition, when you improve your collection process, you are naturally making things easier for your clients as their customer journey becomes as frictionless as possible. In turn, this can help attract new customers and build your brand reputation and visibility, positioning you well ahead of the competition.
Learn how to set up a direct debit for customers in our blog.
Securing a Robust Payment Solution
With automated processes that boost productivity and minimise errors, the Interbacs Direct Debit management service delivers effective new tools to maximise processing performance and reduce your administrative burden.
With a proven track record in successful Direct Debit management for all types and sizes of businesses and with a compelling industry reputation, Interbacs are well positioned to support all of your business account needs.
Ready to make the switch? Contact Interbacs today for a personalised consultation and discover how we can optimise your direct debit processes.