Recurring billing made easy

So you have heard about recurring billing, but think it’s only for big enterprise type businesses. Did you know that you can apply subscription billing to your SMME to improve your cash-flow and give your customers a truly simple 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:

Subscription billing is when you give a merchant or bank permission to debit your bank account or credit card at regular intervals for the purchase of goods or services. The recurrence can be for any period e.g. weekly, fortnightly, monthly, or annually. The subscription amount debited is usually the same on each recurrence, but can differ. For example a weekly fee of $10.00 for your subscription to an online service.

So now that we have established what it is, let’s find out how recurring billing can benefit your business:

Keep the cash rolling in

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

Recurring billing for your SMME means a healthy, improved cash-flow. Billing on a recurring term is also much less trouble compared to manual collection. Manual collection usually means leaving your client 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 client.

This means you are unsure of your cash-flow. This in turn leads to you not being able to plan ahead. Not being able to project what your income will look like over the next few months will prevent you from being able to schedule your own debits and plan the expansion of your business.

Get paid on time

Recurring billing means timely payment. Customers 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 customers claiming they forgot about making payment. You get your money when you require it – hassle-free. Customers still have the freedom however to select their own debit dates according to invoice due date, so everyone’s glad.

Spend less on payment collection & administration

Payment gateways that facilitate recurring payments usually offer automatic account reconciliation or provide bulk reconciliation files that allow simple and accurate consolidation of customer payments. This in turn translates to big savings in time and money on your side. No need to employ many staff members to collect payment and effect reconciliation, save money. Your customers will also thank you for this because they save time. They don’t have to worry about going through to the bank to make manual payment, subscription billing automatically takes care of their payment when it’s due.

It all sounds so great! How do you get going? We suggest 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.

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.

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