Categories Finance

Small Tips For Choosing The Right Direct Debit Service Provider

Introduction

If you want to streamline your paying options and ensure your financial transactions, you should opt for the direct debit solution. However, if you want to take full advantage of the benefits this solution offers, you should consider finding the right supplier. Even though the majority of them are the same, you should keep in mind that there are some with notable differences, ones that might seem small but can have major effects in the long run. With that in mind, here are some guidelines that will help you find the right direct debit supplier. Additionally, you could also check Debit Direct, for any extra info and good advice too.

You must be present on the customer bank statement

22 khklfgkjoWhen yours or your business’ name appears on your client’s or customer’s bank statement, there is no doubt left as to who collected the funds. This helps avoid any sudden cancellations or questions being raised by the customers in regards to the money collection.

Three working days to clear the funds

Once you have collected the money from your customers’ accounts, the funds should appear in your account in no more than three days. Ideally, this should be completed within two working days following the collection of the direct debit. This way, the funds will be cleared to your Client Holding Account, which is a unique account for your funds only, and which is not shared with anyone else but you. Once these funds are cleared, they will be subsequently transferred into the account of your designation and will take no more than two working days to clear. The clearance period will usually depend on the number of funds transferred

There should be no percentage charge

One of the biggest advantages of the direct debit method is that there are no percentage charges involved. Keep in mind that your bank should charge a flat fee for a debt collection, instead of a percentage. This means that your costs are always fixed, regardless of the customer. This is a much better option than having to pay a percentage of the collected amount, which means you will simply give away more, the more you collect.

There should be a variety of reports

To manage your payments and financial transactions better, you will probably need a wide variety of different reports. These can include occasional reports, daily, weekly, and monthly ones. Keep in mind that your needs will most likely change as your business grows or changes, so it would be wise to look for the options that will be of most use.

Quality communication service

When you decide to change the amount of money you collect from your customers, it is very important that the financial institution of your choosing is capable of immediately notifying the customers. They need to promptly inform them of any changes that happen to their billings. This will not only help you manage your collections more easily but also strengthen the bond between yourself and your customers and bolster their trust in you.

Proactive management

33kgkjrjgoLast, but not least, your direct debit institution should be fairly proactive in managing your payments and your customers on your behalf. For instance, they should regularly inform you if there are any clients who have amended or canceled their instructions before the payment collection.

Categories Finance

Beginner’s Guide To Getting A Business Loan

Are you looking for some loan for your business? Well, this can be a hectic process particularly for starters or those with a bad credit score. However, it is not worth to let the business suffer financially as there are some options one can try. So, this article will highlight on how to get a business advance loans from reliable lenders and the procedures one can go through as well.

Beginner’s guide to getting a business loan

Facts about business loans

Most people including those in business think that getting a business loan is one of the hardest things. Others fear the repayments plans since business is a total risk. However, these facts will help you understand a few things about the loan.

fdgdfgdfgfdgfdg

  • You can still get a business loan even with bad credit history – Some merchant lenders usually have a program that caters for such but at higher interest rates to take care of the risk.
  • You get instant approval – business loans from reliable financing institutions and lending companies are fast to approve your loan if you qualify. Unlike banks which can take one or more weeks.

Reasons to get a business loan

If you have been running a business, you probably know that sometimes there is a great need to pump some money into it. Here are the common reasons;

  • Startup capital – some people may have business ideas but no capital to start. However, an appealing business plan can lure the financing institutions into giving you one.
  • Expanding capital – At some point, a business will need more capital to grow by adding stock or opening a new branch.
  • Clearing liabilities – when things are not going well, a business may require some more money to cover liabilities they have.

Various ways to get a business loan

  • Merchant lenders – They provide flexible business loans without any requirements that lock many businesses out. As much as some of their lending plans may have higher interest rates, this may be the only option to get a loan for your business.
  • Banks – They are the common lending institutions out there, and their interest rates are fair. However, they have many requirements which include bank statements, business financial records, credit history and a proof of business existence.ghgfgfhgfhgfgfh

Conclusion

Beginners in business can get helpful insights from the above highlights. They not only guide on the importance of a business loan but also the best places to borrow. If they are not helpful now, they will definitely be at some point as the majority of businesses cannot thrive without the need of a loan.