I want to know how I can use Direct Debits to improve my cash flow

Direct debits are a key tool in cashflow management. Many businesses still offer generous open account terms and rely on the skills of their credit control team and the routine cooperation of their customers to ensure that payments are made to terms. Using direct debits takes away all this uncertainty and can help many businesses reduce their outstanding debtor days and often their staff costs. (It’s worth noting that average debtor days in the UK are 75, two and a half months!)

Don’t forget the direct debit mandate allows for variable amounts to be collected on variable dates and gives you all the flexibility you need, whether you are raising high volume low value invoices or smaller numbers of substantial invoices. Irrespective of whether you are collecting subscriptions, donations or regular commercial invoices, using First Capital Cashflow plc’s services will remove routine and costly processes such as the paper based administration associated with invoices and standing orders, as well as daily banking and some aspects of credit control.

The direct debit system is set up to reduce processing errors and it sharpens up your collection procedures, giving you vital early warning of any reluctant payers who may have cancelled their payment mandate to you. Research also shows that businesses using direct debits to collect their payments enjoy greater customer loyalty and are less susceptible to being changed for another supplier.

You will also get comprehensive but easy to understand reports on the payment history of your customers, which is important customer relationship management data.

“FCC offered us the opportunity to collect by direct debit and therefore substantially reduce the amount of time settle debts. A knock-on effect of direct debit collection was that management time, spent chasing late payments, was eliminated for most of our clients. The Full Sales Ledger Management Service has stopped us needing to chase clients, as FCC does this for us.” (MB, Managing Director, National Call Centre)

At First Capital Cashflow we supply direct debit solutions to a wide portfolio of businesses comprising large Corporates and Owner Managed SMEs. No two Clients have the exact same requirements of us, which is why we like to talk to you about your specific needs as soon as we can. If you fill in and submit this short form, we’ll be back in touch during the next 24 hours.