Debbie Jones - Debit Order Collections
2018-09-14
Managing accounts receivable can be a tedious process, especially if you are regularly collecting payments from your customers. Not uncommonly, customers who have been reliable payers in the past, start to miss an occasional payment. Due to the unpredictability of the economy it's not hard to understand why.
However, in order to counter this potential cash flow problem, debit orders are a simple, fast and effective method of receiving payments - with no bother and no delays. Through a debit order facility, payments can be collected directly from a client's bank account on an agreed date.
Debit orders are typically used for the monthly collection of insurance policies, subscription services, gym memberships, utilities, etc. It doesn't matter if it's a fixed amount or varies from month to month or if the payment is monthly, quarterly or annually. An option to collect ad hoc or once off amounts also ensures ease of payment.
Once the client has signed up for a debit order, everything is automated. On the date that has been specified, the payment will automatically be activated. If funds are not available in a client's account, the payment will take place when funds are available, regardless of the date.
As debit orders are all electronic, they are easily administered and since they are able to be tracked there is no risk of a payment being lost. Consequently, any doubt regarding payment is eliminated. Significantly, businesses that make use of debit order facilities are able to manage their finances more efficiently. As they have a much better idea of what payments they will be receiving, they have better control over their cash flow and are able to budget more accurately. Debit orders are also much safer than handling cash, which may be at risk of theft or loss. Cash deposits also incur costs as do credit card transactions.
Self-collection of debts is hard. A debit order service does not only save money, it also saves time. Clients don't have to schedule time to make a payment, while service providers don't have to waste time or assign employees to make follow up telephone calls and send emails.
Consequently, a debit order system allows companies to fully automate their debtors process so that they can easily request payment, reconcile, and take action against unpaid accounts. It can also be integrated with the company's existing accounting system for increased ease and efficiency. Consolidated easy-to-understand monthly reports are available, which save you time on reconciling your bank statements.
A debit order system is not restricted to use by large companies but is ideal for small and medium sized businesses. Often new business owners do not realise the stress that collecting money from debtors can cause.
Debit order systems also need not be an add-on to a service offering but can be implemented from the outset of establishing a business.
Thanks to advantages such as these, it is evident that through a debit order system business owners can function more effectively and focus on their core services.
Three Peaks
Three Peaks is a specialist provider of payment solutions which offer businesses secure ways of collecting and processing payments from customers. The company's comprehensive suite of core systems can be customised, packaged or supplied alone ‒ or even integrated with your own management software.
A: Offices in JHB, CT & DBN
T: 0861 373 257
E: info@threepeaks.co.za