Managing incoming revenue streams is essential for any business, but especially those starting out that may not have solid cash reserves. Direct debits make the task easy — and managing them with direct debit collection software is a growing requirement for many firms.
The goal of most companies is to increase their client and customers base. For many, however, it can mean large amounts of administration that can drain resources, finances and, ultimately, profit. It does not have to be like that, and direct debit collection software offers a workable way out.
Indeed, many small businesses often struggle as they grow. It represents an unsettling paradox: on the one hand you are winning new clients but on the other, the company is not really getting anywhere. A serious problem that the majority of new businesses soon find themselves in is maintaining a healthy cash flow that allows them to grow. The new businessperson soon finds out that the satisfaction of selling a product or service is gone when the client is either slow in paying, or does not pay at all.
This distressing business scenario occurs up and down the UK every day, and is undoubtedly one of the most frustrating aspects of running a company. Because of it, many new businesses struggle to get going; figures show that around half of all new firms fail in the first five years of trading. Business people forced to close their doors routinely blame cash flow and late payments as well as taxes, inability to get bank loans and administrative issues. It is a tumultuous commercial storm that can take all the enjoyment out of being in business.
In Business: Paying Attention to Revenue Streams
The new-business news is, however, getting better. Evidently buoyed by a recovering and now thriving British economy, people now starting their own businesses are doing better than ever before, and their survival rate is at the highest it has been for three years. It strongly suggests owners and managers are keeping a firmer grip on finances, including their revenue streams.
It also demonstrates many people’s desire to start their own company, even if they are not clear about the road ahead or even how they can stay in business. Handling payments, however, is one of the most critical tasks any company can engage in — and using direct debit collection software is a perfect way to streamline this process.
With direct debit collection software, businesses know they are getting their money when they need it – not weeks and perhaps months down the line. It gives them the confidence and peace of mind that their cash flow will be robust and they can steam ahead with their business plans. In our competitive economic climate, no business of any size can afford to wait around.
The Benefits of Direct Debit Collection Software
The definite advantages of good direct debit collection software are not only are companies able to get their payments when they want them, but that it is a more efficient way of handling them. Here at Logican, we have developed our own direct debit collection software in a way that dramatically frees up staff time and lowers expenses.
Instead of allocating personnel to deal with accounting and chase payments, direct debit collection software handles it all. Employees’ time is then spent in other areas, helping to move the company forward, and costs are slashed as a result. That makes for vast efficiencies, on-time payments and ever-higher profits. It results in sleeker, healthier and more competitive companies.
In addition, Logican’s direct debit collection software is easy to use and will make the processing of payments effortless. Companies that are dealing with large amounts of direct debits on behalf of their clients stand to especially benefit from direct debit collection software such as ours. It cuts through the enormous workload with ease and, with a superior level of accuracy, you can depend on it to get the job done.
This is why smart companies handling direct debit payments are profiting from direct debit collection software.
