10 reasons to start using Direct Debit today
1. No more late payments.
With Direct Debit you’re in control – once authorised you can collect payments whenever they’re due without needing your customer to do anything else. So no more chasing customers for payments - they'll be on time every time.
2. Direct Debit reduces your admin time.
Once a Direct Debit has been set up the whole process can be automated. Payments can be automatically taken and tracked each month which significantly reduces the time needed to manage them.
3. It lets you set and forget.
If you’re collecting fixed amounts at regular intervals, you can set up Direct Debit payments then forget about them as they’ll automatically be taken each time they’re due without you or your customer needing to do anything more.
4. Direct Debit is more cost effective than card payments.
Using the card networks usually costs around 3-5% per transaction. Direct Debit is typically much cheaper. GoCardless only charges 1% per payment up to a maximum of £2, and even less if you’re collecting over 500 payments.
5. It reduces payment failures.
Roughly 3-5% of card payments fail each month due to card expiry or cancellation. Direct Debit payments use a customer’s bank details, which rarely expire or change so failure rates are less than 1%.
6. Direct Debit is flexible.
With Direct Debit, you can change the amount and frequency of payments without needing your customer to re-authorise. This means you can take variable amounts or increase prices whenever you need to without administrative hassle.
7. It improves cashflow.
Late payments impact your cash flow as you won’t know when to expect payments and therefore when you can pay your own bills or buy new stock. With Direct Debit, you'll always know when payments will be arriving so you can plan accordingly.
8. Direct Debit is great for recurring, variable and one off payments.
While Direct Debit is usually associated with regular and recurring payments, it can also be a great option for one-off payments (as long as you don’t need the money immediately).
9. It’s environmentally friendly.
Using paperless Direct Debit is not only great for the environment (no more paper, printing or postage) but it also saves you time and money helping you to streamline your business.
10. Direct Debit is easy to set up and get started.
Direct Debit is often seen as just for big businesses or expensive and difficult to set up but with Direct Debit providers like GoCardless you can use Direct Debit no matter the size of your business or your income. In fact - with GoCardless you can get set up instantly and for free.
To find out more about how Direct Debit could help your business, check out our beginner's guide to Direct Debit for industry specific benefits and examples.