September 28, 2021Late Payments
Getting paid on time should be simple, but sadly, a lot of businesses that release stock on credit are left out in the cold waiting for their payment to come in for weeks.
In a recent study on 150,000 small Australian businesses, 53% of all invoices sent were paid late by an average of 23 days.
Another 20% was for an incorrect amount, while surprisingly, another 20% were paid to the wrong business entirely.
You need various tools under your belt to remain in the game and reduce as many late payments as possible. One of the tools needed to take control of late-paying customers is setting up direct debit payments.
What is direct debit?
Direct debit is a way you can collect payment from a customer’s bank account easily and securely. It’s a direct bank-account-to-bank-account transaction, without the need for any cards or manual input.
You simply save your customer’s bank details once, then continuously charge on a weekly or monthly schedule.
Why offer direct debit?
If you invoice the same customers over and over again, setting up a direct payment using direct debit can save you hours per week and also get money through the door a lot faster.
Here are the top 3 reasons why you should consider direct debit.
1: Get paid on time
This is the main reason a lot of businesses opt for direct debit payments.
Direct debits are completely automatic once you’ve set them up. You won’t have to worry about chasing the same customers every month for the payment of goods sent to them.
Getting direct debit in place will give you the confidence you need to make better decisions and plan out financial necessities.
2: Automated payments
Direct debits are fully automated. Once you set a customer up, you can sit back and relax knowing they’ll be debited on your terms.
Direct debits are useful for your buyer who spends a specific amount per week or month with you.
Putting your customers onto direct debit is easy with PencilPay. This is covered when your customer is onboarded to the platform.
In the online world, payment security is an ongoing concern. Many business owners are concerned about the security and safety of their payment processing options.
However, direct debit is a highly secure and reliable payment method and is becoming one of Australia’s most used payment methods.
Just make sure that you use a payment provider that is fully PCI-compliant.
Direct debits with PencilPay
If you’re looking for a way to get your customers onboarded and start collecting payments via direct debit, then PencilPay has you covered.
PencilPay provides businesses with the fastest way to get more of their customers (new and existing) onboarded with a signed contract and using a direct debit payment that is fully PCI-compliant.