How We Get Paid On Time With GoCardless.
October 03, 2017 | News
For many small businesses, late paying customers are a constant headache and can cause major issues.
Chasing them wastes valuable time and manpower. But even worse, late payments can seriously affect your businesses cash flow. This may cause your business to miss out on important opportunities simply because of a lack of available cash, or it could put your business in a situation where it is unable to operate. It’s frustrating (and somewhat awkward) to send yet another payment reminder on an overdue invoice, only to be met with an excuse, or even worse, with complete silence.
So, what’s the solution?
Online payments. Online payments are fast becoming more and more popular as a choice to help combat the late payment issue, and GoCardless is yet another online payment service to rise to the top in recent years.
Here at FLEXX Creative we use GoCardless to collect our regular hosting, domain name and website support paymnets, and it saves us many admin hours each month. Here’s why we recommend you do, too:
- For a start, you’re being paid by Direct Debit. So the payment is going direct from your customer’s bank account straight to yours: no cheques to get signed, posted or banked and no ‘forgotten’ bank transfers
- You send a payment request to your customer and that’s it: you don’t have to do any more chasing, because who’s got time for that? And, let’s be honest, it’s an awkward conversation to have with a customer
- Your customer stays happy because they’re protected by the Direct Debit Guarantee and they are always notified in advance of a Direct Debit payment being taken, so they can query it with you beforehand if need be
- Go Cardless is the software that handles the Direct Debit payments – it’s really simple to set up, has low processing fees and will drastically reduce your admin time every month. We wouldn’t recommend it if we personally didn’t use it and, of course, it gets on brilliantly with our invoicing and accounting app, FreeAgent.
If you invoice your clients the same amount each month then you can use GoCardless straight out of the box, and it’s really easy!
Real World User Example
We invoice our customers for many different service types; web hosting, WordPress support, domain name renewals etc. With a handful of customers, it’s not too difficult, but as your company grows and your customer base increases, keeping tabs of who owes what, who has paid and who hasn’t starts to get a little confusing.
Using GoCardless (and the auto-invoice option in our invoicing software) we have set up automatic Direct Debits with our customers, collecting payments weekly, monthly or yearly for the services we provide.
So there you have it, a nice and simple way of ensuring you always get paid on time and providing your customers with an extra level of security through the Direct Debit guarantee.