A Direct Debit Sense-Check for Businesses - Can Businesses Afford to Say No?
2013 has been a record-breaking year for Bacs, with their recently published figures being nothing short of spectacular. The most eye-catching statistics are around the enduring popularity of Direct Debits, with more than 3.5 billion transactions being made in 2013 (equating to a total value of 1.1 trillion).
The Payments Council also reported in 2013 that Direct Debit payments had overtaken cash payments for the first time in 2012, with totalling more than 290 billion compared with 267 billion in cash.
These latest figures from Bacs show DD going from strength to strength. UK consumers want DD, and trust them as a payment method.
Bacs managing director Michael Chambers says, "These new figures show that automated payments are as important as ever to UK businesses and households."
As we go forward into 2014, it seems that UK consumers can't get enough of Direct Debits:
* 8 out of 10 of the UK population have at least one.
* 79% of people feel positively about DD - a figure which is at an all-time high.
* 63% of people prefer to pay most of their bills by Direct Debit.
Direct Debits - key benefits to business
Here are some of the key benefits that good Direct Debit Management can offer a business:
* Improved cash flow - With DD, businesses get paid on time, every time. Regular, reliable payments are great for cash flow.
* Saved time - a good DD solution will be fully automated, making manual invoicing and chasing payments a thing of the past.
* Increased customer retention - It have been shown to increase customer retention. A happy customer making recurring payments is what every business wants...
* Better forecasting and planning - Visibility of recurring payments means better forecasting and planning. Plus, a good Direct Debit Managements Solution should have automated reporting and dashboarding.
* Reduced costs - It cost less to process than credit or debit card transactions. And if you go with a cloud-based DD Management Solution, that means no CAPEX or upgrade costs.
Direct Debit - is it right for my business?
Any business unsure of whether DD are right for them can carry out a few simple sense-checks:
* Does it fit with your product? Could you sell your product or service by subscription (or a fixed-term contract) and get paid by DD? Subscription-based businesses are on the rise, selling everything from shaving equipment to shirts. Could your business be one of them?
* Do your customers want it? You know your customers better than anyone else, so do you think DD are an extra payment option that they'd appreciate? If you're not sure why not ask them on social media or as part of a survey?
* Do your competitors do it? If so, then you could be missing out. And if they're not? Adding DD as a payment option can make you stand out from your competitors and could help you get ahead.
Final thoughts...
Late and missed payments continue to be a major issues for SMEs. A recent survey showed that well over half (60%) of SMEs experiencing cash flow difficulties blamed late payments. Good Direct Debit Management can make later or missed payments a thing of the past and even save a business. Hopefully in 2014 more UK SMEs will realise this and add Direct Debits to their armoury...
AccessWallet is at the forefront of innovation in payments, using cloud-based technology to provide efficient, affordable and fully compliant solutions for Direct Debit Management [http://www.accesswallet.com/direct-debit.html].
The Payments Council also reported in 2013 that Direct Debit payments had overtaken cash payments for the first time in 2012, with totalling more than 290 billion compared with 267 billion in cash.
These latest figures from Bacs show DD going from strength to strength. UK consumers want DD, and trust them as a payment method.
Bacs managing director Michael Chambers says, "These new figures show that automated payments are as important as ever to UK businesses and households."
As we go forward into 2014, it seems that UK consumers can't get enough of Direct Debits:
* 8 out of 10 of the UK population have at least one.
* 79% of people feel positively about DD - a figure which is at an all-time high.
* 63% of people prefer to pay most of their bills by Direct Debit.
Direct Debits - key benefits to business
Here are some of the key benefits that good Direct Debit Management can offer a business:
* Improved cash flow - With DD, businesses get paid on time, every time. Regular, reliable payments are great for cash flow.
* Saved time - a good DD solution will be fully automated, making manual invoicing and chasing payments a thing of the past.
* Increased customer retention - It have been shown to increase customer retention. A happy customer making recurring payments is what every business wants...
* Better forecasting and planning - Visibility of recurring payments means better forecasting and planning. Plus, a good Direct Debit Managements Solution should have automated reporting and dashboarding.
* Reduced costs - It cost less to process than credit or debit card transactions. And if you go with a cloud-based DD Management Solution, that means no CAPEX or upgrade costs.
Direct Debit - is it right for my business?
Any business unsure of whether DD are right for them can carry out a few simple sense-checks:
* Does it fit with your product? Could you sell your product or service by subscription (or a fixed-term contract) and get paid by DD? Subscription-based businesses are on the rise, selling everything from shaving equipment to shirts. Could your business be one of them?
* Do your customers want it? You know your customers better than anyone else, so do you think DD are an extra payment option that they'd appreciate? If you're not sure why not ask them on social media or as part of a survey?
* Do your competitors do it? If so, then you could be missing out. And if they're not? Adding DD as a payment option can make you stand out from your competitors and could help you get ahead.
Final thoughts...
Late and missed payments continue to be a major issues for SMEs. A recent survey showed that well over half (60%) of SMEs experiencing cash flow difficulties blamed late payments. Good Direct Debit Management can make later or missed payments a thing of the past and even save a business. Hopefully in 2014 more UK SMEs will realise this and add Direct Debits to their armoury...
AccessWallet is at the forefront of innovation in payments, using cloud-based technology to provide efficient, affordable and fully compliant solutions for Direct Debit Management [http://www.accesswallet.com/direct-debit.html].