Financial obligations are part and parcel of running a business. You have monthly bills to pay, salaries to pay, and other expenses. It may be a challenging task to keep track of all the payments that you need to make regularly. So why not put your mind at ease with direct debit services.
What is a direct debit?
When you apply for direct debit, you’re instructing the bank to deduct a specific amount from your account to pay a seller at a particular time. You must first have an agreement with the seller on how much you are going to pay and what dates you are going to pay. Once you have a deal with the seller, the money is automatically deducted from your account on the due date of collection.
How can direct debit benefit a Business?
As a business, when you have and use direct debit services for payments, you can get the following benefits:
Spread the cost
If the company needs to buy an expensive item and cannot afford a one-time payment for it, you can ask the seller to give you installment terms through direct debit services. Direct debit allows you to spread the costs of paying for an expensive item over a period that you and the seller agree on.
No late payments
With direct debit services, you won’t have to miss paying regular bills on time. Your bank account will be deducted with the amount of money that you agreed to at the exact dates of the agreement.
Saves you time
With direct debit, you would not have to go out and fall in line to pay for bills because the payments will automatically be deducted from your account. You can just set up the process of which sellers you want to be paid with direct debit.
Have peace of mind
Since your payments are made through direct debit services, you’re sure that they are never late and never forgotten. The only way you will miss a payment is if you do not have enough money in your account.
Direct debit services charge lesser than credit card transactions. So you’re saving your money in the long run when you choose to pay via direct debit.
Can I cancel direct debit payments?
Have you ever watched the episode of Friends where Chandler couldn’t cancel his gym membership because he has to go there personally? In this episode, the gym always has a way to convince Chandler of not ending his membership. You would not have this type of problem if you chose to pay for any subscription using direct debit services.
There may be times when you have trouble with your finances, and you cannot afford to pay for a service that your business is no longer using. When you have a direct debit, you can easily cancel paying for a merchant by going to their website and cancelling their service. When you cancel a merchant’s service, you will no longer be able to access that service. Moreover, the merchant is no longer authorized to deduct money from your bank account automatically.
So if you have a lot of recurring payments to make, then putting all your debts in a direct debit system will give you a lot of benefits.