The cash flow is the most important thing for any business. Therefore, it is necessary to keep track of all the incoming and outgoing payments. However, that can be a challenging task especially when dealing with clients from different countries. With businesses expanding their presence in different countries, it is necessary for them to have access to international payments as well. This has led to the rising popularity of direct debit companies in the last few years.
A direct debit company acts as an intermediary between the debit account and the creditor. They will collect money from your account on behalf of a creditor or service provider such as a utility provider or landlord. The direct debit company allows you to make payments without obtaining authorization from your bank first.
You need to find a reliable direct debit company if you have a business that relies on direct debits. This can be quite challenging because there are so many options available on the market today. Here are some tips that will help you find the best direct debit company:
- Start with the big players
There are hundreds of direct debit companies for personal trainers out there. All of them have different features and different levels of quality in their services. You could spend weeks working your way through all of them until you find the right company for you. Alternatively, you could just start with the big players.
- Know what you really need
Direct debit services are not one-size-fits-all kind of payment method. Each business has its own needs and requirements when it comes to payments. Some companies have high volume payments, some have low volume payments; some have variable amounts, others have fixed amounts; some have complex billing, others have simple billing; some have frequent payments, others have infrequent payments; and so on.
So, before you do anything else, first ensure that your business requirements fit with the options provided by the direct debit company that you are going to choose. If not, then choose another provider.
- Check their service portfolio
The best direct debit company should have an extensive portfolio of services that can help you simplify your business transactions and keep everything organized. These include:
- Setting up a direct debit scheme for your business
- Optimizing the collection of direct debits on behalf of your organization
- Collecting multiple sorts of payments at once
- Providing 24/7 access to transaction data through a secure online portal
- Know the Different Direct Debit Companies in the Market
Before you choose a Direct Debit Company, it’s important to know what other companies offering these services are available. For instance, BACS or ‘Bankers Automated Clearing Services’ is a popular choice among many companies but there are others including GoCardless, Stripe and Go Cardless who offer similar services as well. So, make sure that you compare different companies before selecting one.
- Know what level of service you need in a direct debit company
The amount of assistance you’ll need from your chosen direct debit company depends on what type of business you operate and how much time and effort you have to devote to setting up your own direct debit system. If you’re looking for a turnkey operation, then make sure you work with a company that can handle everything for you so that all you’ll have to do is spread the word among your customers about the new option being offered.
Consider any extra services offered by the direct debit company before making a decision.
