What is Direct Debit?
Direct Debit is a powerful tool to increase your cash flow and reduce your administration. It is a means of automating your collection process by obtaining permission from your customer to debit either their bank account or credit card. This permission is provided through a signed direct debit request form.
While direct debit is typically used to collect regular, fixed amount amounts, businesses are finding it to be an effective way to collect outstanding amounts for the services or products they have provided. Depending on the structure of your business, direct debit will allow you to either establish a regular payment schedule, or collect variable amounts (e.g. a phone bill) or a combination of both. Imagine being paid on time for your services. Not only could you improve your cash flow, you could also save a significant amount of time in chasing outstanding payments.