Wednesday, April 10, 2013

How to simplify your recurring billing

By Susan Bapsnill


So you have heard about subscription billing, but think it's only for large enterprise level businesses. Did you know that you can add subscription billing to your SMME to improve your cash-flow and provide your clients a truly hassle-free method to pay? Before we look at how recurring billing will benefit your business, let me walk you through a basic definition of what subscription billing really is:

Ask yourself, what is recurring billing? Subscription billing is used by businesses to charge customers a specified amount more than once. The amount can differ, but is usually the same on every recurrence and the term on which the debit is submitted can occur on any frequency e.g. weekly, monthly, annually etc. Charges can be submitted to your credit card, bank account or account with a payment gateway.

So now that we have established what it is, let's find out how subscription billing can assist your business:

Keep the cash coming in

Recurring billing is not just for large corporate or enterprise type businesses. You as a business owner or freelancer can also implement recurring billing procedures in your business at a surprising low cost. Recurring billing for the SMME truly does pay off.

Implementing recurring billing in your SMME means improved cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their clients to pay via bank deposit or electronic funds transfer only. This means that your clients have the control over when they pay you. Sometimes resulting in haphazard small payments or even worse, late payments.

If you are always unsure of when you will get your payment from your customer you can never plan ahead. This is where subscription billing saves the day. Now you know when you will be paid and can even work out a forecasted payment amount based on past success rates. This healthy cash-flow and ability to plan ahead really does mean that your business can grow quickly.

Get paid now, ask us how

Recurring billing means timely payment. Clients can't forget to pay because now payment collection is automated. You don't have to wait around anymore for late payment or have to deal with clients claiming they forgot about making payment. You get your money when you require it - hassle-free. Clients still have the freedom however to select their own debit dates according to invoice due date, so everyone's happy.

Spend less on payment collection & administration

It does what it says on the box; subscription billing allows you to save money and your clients to save time. Clients no longer need to trek to banks to make deposits or need to remember to login to online banking in order to make a manual wire transfer. That is all automated with recurring billing. You as small business owner also save time on reconciliation of accounts and save money as you do not need to employ so many staff in your accounts department.

It all sounds excellent! How do you get going? We recommend you sign up for a payment facilitator that automates account recon and shop around for a payment gateway that enables your small business to bill recurrently.




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