Direct Debit is your best chance of being paid in uncertain times
In these times of unprecedented economic upheaval, small to medium size businesses – which are the backbone of the UK economy – are being urged to give themselves the maximum amount of financial protection by asking customers to pay their invoices by Direct Debit.
Luisa Grey, a director at Eazipay Ltd, one of the UK’s leading Direct Debit and automated payment processing companies, is advising SMEs to try and get their customers to pay by Direct Debit so they can be confident of being paid on time and in full.
“None of us know how long the current uncertainty will last, or how deeply the impact will be felt,” says Luisa, adding: “This means that companies are protecting themselves as best they can – and that means holding on to cash.
“It’s a prudent and sensible step to take, but if holding back cash means delayed payments to suppliers, who themselves are desperate for cash, then a bad situation becomes intolerable.”
One solution is for SMEs to collect money they are owed by Direct Debit. In that way, if the money is available in a customer’s bank account it will be collected on time, in full and paid over to the business – no exceptions.
“Asking your customers to pay you by Direct Debit gives small businesses the best possible chance of being paid and achieving a level of certainty in very uncertain times,” adds Luisa.
“If your customers are confident about their own cashflow position, then there should be no objection to paying you by Direct Debit. If, on the other hand, they are reluctant, then that tells you something important about their own business confidence and you can make an informed decision about the possibility of not being paid.”
Cambridgeshire-based Eazipay, which currently employs 29 full and part time staff, has been at the forefront of collecting and processing automated payments like Direct Debit for over 17 years.
In addition to its Direct Debit collection service, Eazipay also offers a range of other automated payment processing services including Direct Credit transactions, SEPA Direct Debits for payment collection in Euros, and a card payment service allowing its clients to collect and process customer payments via debit and credit card.