Nurseries, private schools, after school clubs, extra tuition. Whatever your educational establishment offers, Direct Debit can smooth out all the lumps and bumps of collecting individual fees from parents and puts the tuition fees into your account on time and in full.
Ask yourself this question: “If I pay all my costs on time, why shouldn’t I be paid on time?
With Eazipay’s Direct Debit collection service, you will be.
MINI CASE STUDY
A retired teacher didn’t want to lose his professional skills and wanted to keep working so he invested in an after-school extra tuition business.
All went well until he discovered that his cash flow was being decimated by parents not paying in full, forgetting to bring in fees, miss-placing their cheque books or simply promising to pay “next week.”
His choice was stark: get control of the business’s cash flow, or risk closure.
Creating a Direct Debit fee collection process and making it a requirement saved his business.
If you operate an educational establishment you could well be collecting a considerable number of payments from parents, several times a year. The last thing you need is bad debts. Not only is it disruptive to your cash flow but it also impacts on your relationship with parents and ultimately can lead to the interruption of a child’s education.
By collecting fees by Direct Debit, much of this disruption can be avoided. Fees that would fall due each term can be spread over a whole year and collected monthly. This gives you regular cash flow and makes annual or termly fee collection much more manageable for parents.
If your business involves providing parents with subject specialist tutors then you will want to be certain that fees due to you and your tutors are paid regularly, without interruption.
This is where Direct Debit can really help. Offering the Direct Debit option to parents significantly reduces the risk of non-payment or parents habitually falling behind with fees. The advantage to parents is that once the Direct Debit is set up, they can be virtually forgotten about.
Wherever possible, fee collection should be automated, that way, once the Direct Debit has been set-up, you have the peace of mind of knowing that fees owed to you will be collected on time and in full – every time.
There is a perception that using any third party to collect money must be costly. Look at the figures, however, and it compares favourably with the cost of processing cheques or credit card fees.
Additionally, Direct Debit enables businesses to save many hours of laborious credit control. With Direct Debit there’s no need for your accounts team to chase invoices so companies can put their employees' time to much better use, or possibly even reduce staff costs.
Eazipay sets the gold standard in Direct Debit management. Our levels of customer service are second to none, our set-up process is very simple and with Direct Debit collections starting at just 40p per transaction; it’s incredibly cost-effective to operate.
All you need to do is provide the necessary information about your new payer. The bank is then given five working days’ notice that there is to be a new Direct Debit; on day five the payer’s account cab be debited and the funds credited directly to a unique client holding account, which will be personalised in your company name.
Cleared funds are then transferred to your account on day seven.
It’s that easy and once your clients are set up the payments go through automatically at the frequency you soecify – weekly, monthly, or as infrequently as once a year.
Eazipay offers total support every step of the process and once the system is up and running our expert staff are always just a phone call away should help be needed.
It’s a common misconception that setting up a Direct Debit with a customer is a time consuming process. It always used to be the case that new Direct Debit customers had to sign a paper instruction. This involved either a face-to-face meeting or communicating by post. In any event, it could become a time consuming and sometimes lengthy process.
Times, however, have moved on.
Today, paperless Direct Debits are much more common. Customers can sign up over the phone or online and both ways are much quicker and less labour intensive.
These new methods also improve accuracy and, because they are so easy, increase sign-up rates.
Eazipay’s Paperless Direct Debit sign up scheme manages all of this for our customers. It saves time and reduces the risk of entering invalid information for new payers.