Last editedSep 20224 min read
Is your customer in control of your payment collection process?
Are you experiencing late payments on the invoices you send to clients and customers?
Late payments and all the problems and stress they cause are not a bug but a feature of the traditional invoicing payment method!
Traditional invoicing always results in late payments and cash flow issues because it relies on manual action from your clients and customers.
When your client receives your invoice, they will usually settle it via manual bank transfer, possibly by card payment or, less often these days, send you a cheque. This puts your customer in control of when you get paid because you are relying on them to take action to settle your invoice.
Payment problems experienced by traditional invoicing businesses
No control or visibility over payment timing,
as a result, it takes too long to get paid,
meaning you have to chase customers for payment,
which increases the work required to manage payments
and creates friction between you and your clients
Traditional invoicing as a payment collection method may appear to be free and straightforward; however, it is labour-intensive and inefficient in practice, with your customer in control of when you get paid.
Invoicing via GoCardless eliminates late payments
Eliminating late payments and getting paid on time is vital for SMEs. Indeed, good cash flow and efficiency have never been as crucial as in today's economy.
For this to happen, businesses must regain control over their payment collection process.
Get paid on time
GoCardless offers you an easy and affordable way to take control of your payment collection process and ensure you get paid on time. Every time!
Reduce manual admin
Additionally, automating the payment process will significantly reduce the amount of financial admin required. And with no late payments, much time previously spent on chasing these late payments is saved to focus on other business-critical tasks.
Save time & money
With GoCardless, you can ensure that your invoices are paid on time AND reap the time-saving benefits of automating the payment collection and bank reconciliation process.
How Does GoCardless Eliminate Late Payments and Save You Time?
GoCardless is a leader in bank payments; direct account-to-account transfers between banks with no intermediaries involved. There are two types of bank transfers:
push payments - manual payments initiated by the payer
pull payments - automated payments authorised by the payer but controlled by the payee
Traditionally the settlement of invoices has been pushed-based, but as banking has moved online, new opportunities have opened up for SMEs to improve payment collection processes. Easy access to pull payments for small businesses is part of that development.
Pull payments put you in control
Rather than use the 'push' payment method, which requires manual action from your client and puts them in control, GoCardless uses automated 'pull' payments authorised in advance by your customer.
Pull payments, such as Direct Debit, put you, not your client, in control of when and how much you get paid, with the funds pulled from their account on due dates without you having to lift a finger.
This makes life easier for your customer as they don't need to remember to log in to their mobile banking to make a payment or to write and send a cheque every month. It also makes life easier for your business, knowing payments will be automatically collected on time every month.
Benefits of invoicing with GoCardless
With GoCardless, businesses of any size can use automated Direct Debit collection to:
eliminate late payments to ensure invoices are always paid on time
meaning no more chasing late payments
which reduces time-consuming payment admin
with the time saved used to focus on other critical tasks
How it works
It is free to sign up to GoCardless and start using the product - no commitment or contract is required.
Easy to set up
You can quickly and easily set up invoice payments via Direct Debit through the online merchant dashboard. Once you've set up a payment, a digital mandate form is emailed to your customer for authorisation.
Get paid on time
Once your customer has authorised the mandate, you can create and send invoices to them using the merchant dashboard. These invoices will have due dates set by you, and payments will be collected automatically on those dates. It is that simple.
Need instant payments
GoCardless isn't only for recurring payments. If you need to collect one-off invoice payments instantly, you can do so via the Instant Bank Pay feature.
Done-for-you & automated
GoCardless will deal with all the technical and regulatory processes on your behalf. Therefore, once your customer has authorised the mandate, all you need to do is set up the payment in your merchant dashboard with the due dates specified. You will now get paid on the due dates until the agreement is cancelled.
With Direct Debit, you can ammend the amount and payment frequency without asking your client to authorise again, this is great for invoicing businesses who invoice clients irregular amounts and at irregular frequencies.
Over 200 partner integrations
Get more functionality and automation by quickly and easily integrating GoCardless with your favourite accounting software.
From the customer's perspective, once payment has been authorised, they will receive advance notification that the funds will be taken on a specified date. They do not need to take any further action.
As well as making it easier for your customer to pay you, Direct Debit also protects them from unauthorised payments via the Direct Debit Guarantee.
Direct Debit is one of the most secure forms of payment available. As a direct account-to-account payment method requiring no intermediaries, Direct Debit is highly resistant to fraud compared to card and digital wallet payments.
Who are GoCardless?
GoCardless, a global leader in online bank payments since 2011, serves over 70,000 businesses, processes £25bn in payments annually, and has built a seamless bank payments network across 30 countries.
Customer satisfaction is incredibly high, with 95% of customers likely to recommend GoCardless, according to G2, which is higher than competitors.
With over 200 software integrations available from some of the world's top accounting companies, including Xero, Quickbooks, and Kashflow, GoCardless is a trusted name in the world of payments.
Start getting paid on time today
Try GoCardless today - it's free to sign up, and with no commitment required, you have nothing to lose (except late payment stress).
It's easy to create payments in just a couple of clicks using the merchant dashboard, or connect your favourite accounting software and further automate your payment collection process.