Recurring billing made easy

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 enhance your cash-flow and provide your customers a truly easy method to pay? Before we look at how recurring billing can benefit your business, let me walk you through a simple definition of what subscription billing really is: So, recurring billing, what is it? Recurring billing will charge an amount repeatedly to your credit card or bank account. The amount is usually the same and recurs on the same day each month. But subscription billing can also happen for variable amounts on any term or frequency on any date. Subscription billing is great for bills that never change in amount, for example: An annual subscription to your favorite magazine. Now that we know what subscription billing is, let’s see how recurring billing can make your business better: Keeping your cash-flow in top shape If like many other small business owners and freelancers you think that recurring billing is solely for enterprise or corporate entities, you will be surprised to learn that recurring billing can work wonders for your SMME as well. You can quite simply and very cost effectively implement subscription billing in your own small business. Subscription billing for your SMME means a healthy, improved cash-flow. Billing on a recurring term is also much less hassle compared to manual collection. Manual collection usually means leaving your customer in control of payment e.g. Wire transfers or bank deposits. This can often lead to late payment and sporadic small payments that incur transaction fees for both you and the customer. If you are mostly unsure of when you will get your payment from your client 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 expand more rapidly. Get paid now, ask us how Recurring billing allows you to control when you get paid. It’s easy, when custolmers sign up you specify the debit amount and recurrence. Then sit back and wait and you see funds being automatically collected on the dates specified. This means no more late payment or waiting for urgently needed funds to clear. You now know precisely when you are going to get paid. Reduce administration Ensuring the bulk of your clients pay via recurring billing translates to reduced administration work for you and your clients. Administration is reduced on the customers side because payment is automated. The client no longer needs to go into a bank to make a direct deposit or login to online banking to manually make a wire transfer. Administration is also reduced on your side because you do not have to reconcile hundreds of small individual payments. Gateways that allow for recurring payments usually offer automated account reconciliation or provide bulk recon files that allows easy and accurate resolution. Wow, that sounds great! But how do I get started? Signing up for a payment gateway and payment facilitating system is step one. Find a gateway with competitive fees and a facilitator that enables automatic account recon. Susan Bapsnill is an expert at business billing. She recommends a subscription billing system to automate your billing procedures. Click here to try a subscription billing system for free.

Advertisements