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5 ways to reduce Late Payments
- Agree on payment terms - before you start work, make sure you and your clients are on the same page when it comes to payments.
- Set up automated Direct Debits - using spreadsheets is old fashioned and arduous, and can increase data risks for your customers. Finding a integrated system saves time and puts you in control of your cash flow.
- Adapt to cloud-based software - being able to connect all your current systems seamlessly is crucial. Finding a provider that is compatible makes it even easier. Access PaySuite integrates with accounting packages, CRMs, ERP systems and more.
- Look for sector-specific solutions - to meet your specific business needs that can provide solutions tailored to your business.
- Automate your comms - adding automated processes around payments communication helps with efficiency and offers the customer flexibility.
Is your business prepared?
When The Federation of Small Businesses (FSB) published its quarterly Small Business Index (SBI) report in 2022, around 10% of 1,200 business owners surveyed said that late payments were threatening the viability of their business. Almost one in three had experienced more late invoice payments over the past three months - a precursor for a growing trend, which FSB warns could see half a million small firms collapsing in the next 12 months.
Since 2020, the pandemic has dramatically impacted organisations across the UK. Unsurprisingly, amid a timeline of business closures, furloughed staff and daily restriction announcements, even companies with the strongest track record for paying their invoices on time have had no choice but to fall back on bad payments practices. The FSB reported that cost pressures had hit a seven-year high in 2022.
Many people are all too familiar with the feeling when your personal finance commitments snowball out of control. The same thing can happen in business - a trend of regular late payments from customers or other stakeholders can soon lead to a disjointed cash flow that takes weeks, months or even years to repair. For small or medium businesses in particular the stakes are much higher, with less infrastructure, investments or financial safety nets to fall back on.
External factors such as inflation, increasing business rates and debt or changeable market conditions can’t be controlled. However, the way you process and manage your payments is one simple change that could stabilise your cash flow and mitigate the climate of ‘crisis’.
Benefits of Automating your Payments
- Improve cash flow - Direct Debits are among the cheapest methods of payment and can help to prepare your business for any cash flow challenges
- Save time - Chasing customers is no fun! Streamline your processes so you can focus on growing your business, not boring admin
- Enhance security - Your customers will have peace of mind being backed by a FCA approved business
- Happy customers - As you'll be providing flexible payments methods that are backed by Direct Debit Guarantee
Frequently Asked Late Payments Questions
How do failed payments affect businesses?
Failed payments could have adverse effects on your business credit rating - without collecting payments when they’re expected, paying your own invoices could soon prove difficult. Reputation is at risk too. A study by Barclays revealed that more than half of UK adults would boycott a business if they knew they were a late payment offender. Internally, healthy cash flow is essential for paying staff on time, or investing in necessary equipment and facilities to drive innovation and progression.
Why should I automate my direct debits?
Without a digital payments solution in place, businesses are forced to manually process each and every payment which is time consuming and costly. Investing in software that automates the process and lets you focus on the important things that matter in your business helping you scale.
What happens if my customers don’t pay?
If a customer repeatedly fails to pay you might be able to take formal debt recovery action. First issue a final request for payment and give them 7 days to pay, if that fails you may need to consider issuing them with a Statutory Demand.
How do Direct Debit collections work?
To start collecting Direct Debit payments, your customer provides you with a Direct Debit Mandate or Direct Debit Instruction (DDI). This authorizes you to collect payments from them at any time.
For example, if your customers are agreeing to a regular and fixed amounts, such as a membership payment, there will be a specific payment that is taken at the same time.
To start taking Direct Debit payments, you just need to notify them via “Advance Notice” to let them know a payment is leaving their account. This is usually done in writing or by email and needs to be approved by your sponsoring bank.
The beauty of Direct Debit for fixed payments, there’s no need to keep notifying customers – an initial notification is enough before payment is collected.
However, for variable amounts, advance notice is needed before any change and must include payment date and amount.
What features does Access PaySuite offer?
Full payment visibility with detailed reporting
Get under the skin of your Direct Debit collections with our comprehensive reporting suite, enabling you to understand paids, unpaids, re-presents and indemnity claims, so you have clear visibility over your income.
Connect to third party software
Our market-leading API means you can integrate your Direct Debit payments to your business software, CRM, ERP, accounting system, and more. Forget manual reconciliations and embrace automation with our online Direct Debit system.
Awesome customer service with our expert team
Our dedicated team is at the end of the phone or email and our Support Centre is in place for you raise and escalate any issues, whether that’s bulk transfers, AUDDIS migrations or simply setting up your login.
If you need advice we are always here to talk. Talk with an expert today!
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As the experts, we’re on hand to help you manage your payments across our range of hassle-free solutions.
Direct Debit
Simplify recurring payments with our reliable and flexible direct debit solutions. Automate billing processes and enjoy hassle-free collections, ensuring a steady cash flow.
SEPA Direct Debit: Streamline European payments
Simplify cross-border transactions with our SEPA Direct Debit solution. Automate recurring payments, enhance cash flow, and reduce admin overhead. Offer customers a convenient, reliable payment method across 36 SEPA countries for increased loyalty.
Online Payments
Seamlessly integrate our online payments solution into your e-commerce platform. Offer your customers a secure and convenient way to make purchases, increasing conversion rates and customer loyalty.
On-Demand Pay
Enable your customers to make payments on their own terms with our on-demand payments solution. Whether it's for services, subscriptions, or purchases, our platform ensures a smooth and instant payment experience.
Multi-channel payments
Deliver a consistent payment experience across multiple channels with our omnichannel payments solution. Seamlessly integrate online, in-store, and mobile payments, providing your customers with flexibility and convenience.
Open Banking Payments
Embrace the future of banking with our open banking payments solution. Harness the power of APIs to securely connect with your customers' bank accounts, enabling fast and secure transactions.
Phone Payments
Embrace the future of banking with our open banking payments solution. Harness the power of APIs to securely connect with your customers' bank accounts, enabling fast and secure transactions.
Face to Face Payments
Simplify in-person transactions with our face-to-face payments solution. Whether it's through a traditional point-of-sale system or a mobile device, our platform ensures secure and efficient payment processing.
Direct Credit
Take full control and make your outgoing payment transfers accurately and efficiently, with one of the most secure and trusted payment methods.
Unlock Your Revenue Potential and Safeguard Your Payments
With our revenue maximisation tools and solutions, you can optimise your income management, enhance payment security, mitigate fraud and risk, and ensure robust identification and verification. Our goal is to empower your business to maximize revenue and thrive in the payments industry.
Income Management
Our software enables you to maximise your revenue by accelerating your cash flow. With advanced tools and features, you can ensure timely and efficient payment processing, reducing payment delays and improving your overall financial performance.
Fraud and Risk Management
Our software includes powerful fraud and risk management capabilities. We provide comprehensive solutions to help you identify and mitigate potential risks, detect fraudulent activities, and protect your business from financial losses.
Identification and Verification Solutions
We offer advanced identification and verification solutions to ensure the authenticity of your customers. Our software enables you to verify customer identities, validate their information, and comply with regulatory requirements. By implementing our solutions, you can enhance trust, minimize risk, and streamline your onboarding processes.
Payment Security
We prioritise the security of your payment transactions. Our software is equipped with robust security features to safeguard customer data and prevent fraudulent activities. By employing encryption techniques and following industry best practices, we ensure that your payment information is protected and transactions are conducted in a secure and safe manner.
Take control of payment collections with Direct Debit from Access PaySuite
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