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Is GoCardless right for me?

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedApr 20231 min read

GoCardless automates the payment of your business' invoices. Is it the right solution for you?

Is GoCardless right for me?

Automating payments is a possibility right now, with a system that has been around for decades and is trusted by millions of users across the US - Direct Debit (also known as ACH Debit or bank debit).

Using Direct Debit via GoCardless allows you to automate the payment of your business’s invoices and improve cash flow. And it’s even more powerful when it’s used with online invoicing systems to reconcile bills on the spot.

Want to know if it'll bring savings to your business? Answer these five questions.

1) How long do you spend chasing payments each month?

If it’s more than two or three hours, then Direct Debit could be a time-saver for you. Once a Direct Debit mandate is set up, payments are collected automatically and at any time, with money clearing in between three and five days.

2) How long, on average, do you wait for payment past your agreed payment terms?

If your customers tend to ignore your payment terms, paying you on average more than 10 days late, Direct Debit can help get you paid sooner. Because money is collected whenever it’s due, you’re in control.

3) What percentage of your customers pay you late at least once a year?

If it’s more than 10%, Direct Debit can help reduce that. For those who collect fixed amounts at regular intervals, GoCardless allows you and your customer to set and forget payment, letting it all be handled automatically. Equally, your customers can pay you via Direct Debit for one-off transactions, too.

4) Do you take regular or recurring payments from the same customers?

If so, Direct Debit or standing order may be the answer. They are both low or no cost in terms of transaction fees, unlike cards or bank transfers. In particular, Direct Debit has the advantages of being highly flexible, with a low failure rate, and a near-zero risk of late payment.

5) How many customers do you have?

If you have fewer than 25 customers, standing order may be the best method of taking payment, as it works well for those who have close relationships with a small number of clients.

Direct Debit is better for those with a larger customer base - 25 customers and above - since payments are easy to set up, and are then automated. Plus, failed payments will be flagged up, so you won’t be left out of pocket.