A business owner of a small to medium enterprise (SME), is often solely responsible for managing the recurring debit orders of the business to ensure there is sufficient cash flow available and that the company is financially sound.

Keeping track of the business’s finances is a full-time job and often only one part of what the business owner does, however, it is easily the most important role. If the process isn’t well managed the business could find itself short of the financial resources, it needs to operate and grow.

Luckily, with the advancement of technology, there is now a way to implement a recurring debit order solution that is reliable and allows you, the business owner, to remain in control. By automating your business’s financial processes, you are taking control of your business’s cash flow without jeopardising customer relationships.

Automating a business’s debit orders means the technology does the mundane, repetitive, administrative aspect of the financial manager’s role such as data capturing, manual invoicing, following up on payments, and payment reconciliations. This frees up time and leaves the business owner to focus more of his/ her energy on running the business.

There are a number of ways implementing a recurring debit order solution will improve the cash flow and financial management of a business. 

PayPort SA looks at 7 ways an automated debit order solution can improve the cash flow of your business.

1. A recurring debit order solution ensures payments come in on time.

One of the biggest advantages of automating your business’s recurring debit orders is being able to adequately manage the organisation’s finances. Knowing how much money is coming in and when, means you can negotiate better payment terms with your suppliers, free up capital to fund growth projects or take advantage of other opportunities when they present themselves.

This kind of payment solution ultimately enables a business to streamline its cash in and outflow and operate optimally.

2. Automated debit orders allow you to choose the collection date.

Another great function of a recurring debit order solution is that you can set different collection dates for different debit orders. This allows a business to institute different payment terms depending on the needs of each of its customers. Which allows you to tailor the contract and length of payment terms to accommodate each customer’s unique situation.

Why have a one size fit all approach when you can offer tailored payment solutions with no added hassle or stress.

3. Increase business cash flow.

By instituting a recurring debit order and payment management system you, the business owner, take control of when payments are processed. This gives the business full control over its cash flow, making it easy for the business to meet its financial obligations, plan ahead and scale the business.

There is no need to put your business on hold because of late payments that negatively impact your business’s cash flow when you can ensure that your business is paid on time.

A recurring debit order is a quick and efficient way to ensure payments due are paid timeously.

4. Reduces the risk of having cash-on-hand.

Cash is king but handling large amounts of cash on a daily basis presents a significant financial risk. By instituting a recurring debit order solution, you limit the amount of cash handled on-site, which is a safer option. An automated debit order is processed electronically so cash does not change hands in store. This protects both the business and the customer.

Debit orders are a more cost-effective solution than traditional means of collecting and processing payments.

5. Reduces late payment penalties.

Getting paid on time means a business can meet its financial obligations on time. This is especially important as late payments often result in additional unnecessary costs such as penalties, added interest on the money owed and late fees.

Why incur added costs because of late payments, if you do not have to?

6. Automated debit orders for both variable and fixed amounts.

Not only can you control when debit orders are processed but with an automated debit order solution, you can create debit orders of varying amounts for the same client. This means you can set the debit order to change to a different amount ahead of time depending on the contract and changing needs of your customers.

This payment system is also capable of processing once-off or ad hoc debit orders.

7. Control debit orders from an easy to manage, user-friendly, online dashboard.

All these amazing features are available depending on the package you have selected and can be managed from your central online account, after initial setup.

All you need to do is log in to your online account, access your payment dashboard and set the terms of your business’s recurring debit orders.

PayPort SA has created a simple and effective way for businesses to collect money from their customers and the best part is that, once the initial setup is complete, the entire process can be managed online. Implementing an automated payment solution is an easily accessible, cost-effective solution for SMEs to manage their business’s cash flow.

Our recurring debit order solutions make it easy to set up an automated debit order schedule which means you can ensure you get paid on time, every time without having to process the same payments manually every month. You remain in control of your business’s finances, only pay for what you use and do not have to employ a third party to manage your business’s finances.

Contact PayPort SA today to implement an automated debit order solution for your business.

Leave a Comment