Direct Debits Improve Cashfow

As part of our Credit Crunch Survival Tips we wrote about just how important cashflow is to a business. If you can align you cashflow positively then you can not only increase your chances of survial through a recession but also begin to take your business further allowing you to plan for staff or new equipment.

So what could you do to improve your cashflow? Chasing payments from exisiting customers is truly and important element to this but what can you do to move your business forward once any historic payments have been received?

The first step is to manage the expectations with your new and existing customers with precise credit terms. This is not fool proof of course but can improve the percentage of customer that pay you on time.

Next would be to offer a facility which not only breaks down the payment for the customer but will ensure regular payments are collected.

Direct Debit is a cost effective method of collecting regular payments on time with the full overview of your monthly cashflow. If you are already collecting monthly payments by standing order or cheque then switching over to a managed direct debit facility is very straightforward.

Even if you do not collect on a monthly basis then Direct Debit is a great way to improve monies owed to you.

If you would like to know more about this service that we can offer you then please click here or call 0121 234 7982 for full details.