Decrease late payments
Let’s be honest: with all of the bills and payments people have to worry about, they’re likely to forget about at least one of them. By offering recurring payments, it doesn’t have to be yours. Late payments can have a significant negative impact on your business’ cash flow. Because of this, many businesses charge a late fee to customers when they make a late payment. Doing this can hurt customer relationships. Setting up an automated payment schedule ensures that you’re getting paid on time while making it easy for the customer. It also helps take the guesswork out of your cash flow situation.
Improve relationships with your customers
Having a conversation with a customer to let them know you’re charging them a late payment can be awkward and uncomfortable. Although it’s necessary for your business, it also hurts your relationship with the customer. Recurring payments not only reduces these conversations, but it also saves both you and the customer time and energy. Consumers jump at the opportunity to set up an automatic payment because it gives them one less thing to worry about. As a business owner, automatic payments gives you peace of mind knowing that you’re getting paid, but it also gives you more positive interactions with your customers.
Keep payment information secure
Most businesses that offer recurring billing solutions also give business owners the ability to securely manage their customer information. Cutting out paper reduces the likelihood that sensitive customer information will get lost or duplicated.
Minimize the legwork
When you offer recurring billing, all you’re required to do is set up the initial payment schedule and then manage any changes in the payment type or amount. There’s no need to remind customers that they have a payment coming up or that their payment is late. When an automatic payment is made, the payment will get deposited into your business’ bank account. All of the other work will be taken care of through the company that’s processing your recurring payments.
If you’re in an industry that can replace some of the manual processes with more automated ones, recurring payments can have a positive impact on your business. Your staff, cash flow and customers will greatly benefit from this option.