A recent report from accounting software firm Xero showed that when it comes to paying bills, Kiwis are a bit slack. The report analysed 12 million invoices and found that no matter what the due date for payment was, on average they were paid two weeks late.
Two weeks is a long time in business, and companies – big or small – that aren’t diligent about watching their cash flow could find that two weeks is the difference between staying afloat or going under. It’s why poor cash flow is sometimes described as the ‘kryptonite’ of business.
Direct debit billing is the tool that creates a cash flow friendly environment for businesses to operate and thrive in. It allows organisations to predict and guarantee the collection of cash flow when it is due and remove the element of unpredictability that cripples the business cycle.
The key to the success of direct debit is in the nature of the customer purchase decision. Since signing up to a direct debit agreement requires a customer to complete a form either online or on paper – which takes away the ‘impulse’ of the purchase – these tend not to be unplanned spending decisions!
The direct debit customer has looked at the various options and values the product offering enough to commit to the direct debit payment plan. For the customer, it’s now about convenience and efficiency.
What’s more, direct debit payments open the door to affordability of goods and services for cost conscious customers. The tough times of the financial crises of four years ago are still realities in the lives of many consumers, who often still struggle to afford day-to-day products and services at their full purchase price.
From the business side of things, direct debit payment plans and membership options have given fresh energy to businesses wanting to provide interest free options in the tougher economic conditions. The point is that if a business can successfully show a customer the value in paying for their purchase with direct debit payments then it results in a win-win situation for both the business and the customer!
The Debitsuccess solution is a simple one that allows you to grow your business while providing scalability, security and customer service, so you collect your money when it is due; not 30, 60 or even 90 days after the invoice has been sent!
As a business owner, your job is to build great relationships with your customers, providing exceptional service while doing whatever it is that you do best. If you are spending time chasing and collecting payments, you are wasting precious business development time and not focusing on building those relationships.
So don’t let your business practices become the Kryptonite that stops you from being super. Talk to us today about how we can help set up direct debit payment processes for your business that will save you time, money and increase your ability to get more customers.
For more information, e-mail firstname.lastname@example.org or call 09 4810498.