Direct debit is not a new payment method.  In fact it is a proven and reliable means of collecting fees and payment instalments across a number of industries.  In fact the number of direct debits has increased 10% annually for the past decade with approximately 2 million direct debit transactions being process daily in 2008 (Ref APCA).

So why is direct debit so popular and why are businesses using it?

1. Direct debit gives you more control over your debtors.  Often small business owners issue invoices, nominate payment terms and on the date they expected the funds the payment is not made.  Obviously people are busy but these delays in payment can seriously affect the cash flow of a small business.Direct debit significantly reduces the time it takes for your business to be paid.  Payments are made on the agreed date between you and your customers.
2. Direct debit can also increase the attractiveness of your high value products.  Many of our retail customers use PeopleHub Online to sell their products by accepting instalments over time.  In this way they make their products more attractive and thus easier to sell.
3. Direct debit can assist in automating the collection of regular payments amounts from your clients.  It can be time consuming to invoice and reconcile the regular the payments of your customers.  Direct debit and the systems that support this particular payment option can significantly save your business time in these activities.

Stay tuned for part 2 of this series.  We would love to hear how you use direct debit and any questions you may have on the PeopleHub system.