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
When 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.
Last, 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.