Last editedApr 20232 min read
Ever found yourself out of pocket because customers don't pay on time? You're not alone – it’s a problem affecting over half of Britain’s small businesses. In fact, recent research shows that small and medium-sized enterprises (SMEs) in the UK are owed a staggering £67bn in outstanding invoices.
These late payments don’t just block the cash flow of your company; they also remove the long-term security and capital you need to run, grow and evolve. They also take considerable additional resource (both time and money) to chase up and get paid.
There are a number of reasons why your customers may be late with their payments:
They might have ‘mislaid’ the paper invoice or missed you off their payment run
They may have extended their payment terms without consulting you
They might even be in a poor cash flow situation themselves this month and simply don’t have the available cash to pay you
As a result, bad debts rack up and cash flow slows down. Startups or small businesses are unlikely to have enough money in the bank to get out of these unplanned and unwanted cashflow holes.
That's why GoCardless has developed a Direct Debit solution that removes these potential payment barriers, speeds up customers’ remittances and boosts your cash flow.
“GoCardless gives us control over when we get paid and takes away the uncomfortable conversations about money.” Steve Leighton
Founder, Has Bean Coffee
Make it easier to get paid
So what’s the answer to late payment problems? It’s simple - make it as easy as possible for your customers to pay you. Here are a few ways you can do that.
Set up simple ways to accept payment – Using an online payment gateway, or accepting Direct Debit payments, removes a lot of the hassle and admin pain for customers. That means quicker payment for you.
Switch to a regular monthly fee – Monthly retainers or monthly packages spread the cost for the customer and give you a more regular cash pipeline.
Use an accounting system that has online invoicing – Email invoices direct to the customer and remove the possibility of a paper invoice getting lost in the post.
How GoCardless revolutionises your payments
At GoCardless, we understand the impact that unpaid invoices can have on your business. That’s why we’ve created a simple, cost-effective way to take payments using Direct Debit.
For starters, GoCardless is completely free to set up with no minimum term. We charge just 1% of the transaction amount (capped at £2), with no additional fees or costs.
Simple to set up online – Create your account in just minutes, then invite your customers to fill out their bank details securely and easily. You can start collecting payments the very same day.
Easy authorisation – Customers authorise you to collect payment as soon as it’s due, automatically (so no more missing your due date).
Get paid on time, every time – Once customer Direct Debits are set up, you know exactly how much you’ll be paid, at all times.
Collect payments across Europe - GoCardless accepts payments in pounds with Bacs and euros via SEPA, enabling you to collect payments across the Eurozone.
Integrated into accounting software - GoCardless is already integrated with the main accounting software packages, including Sage, QuickBooks and Xero, so you can automatically set up payments alongside your invoicing. Check out our main partners here.
“GoCardless gives me a regular income so I can use the funds for growth.” Alex Falcon Huerta
Founder, Soaring Falcon Accountancy
Get your cash flow into good health
With GoCardless taking care of your payments, you take a huge amount of the hassle out of managing your and outstanding debts.
You no longer need to waste precious time on debtor tracking and chasing customers over the phone. There will always be money in the bank – all year round.
Stop worrying about when that next big payment will arrive. Instead, get back to focusing on managing your business – with healthy cash flow guaranteed.
Find out more about GoCardless here