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Being paid on time if you are an SME – it can be done

January 30, 2021

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“We were delighted when our Director, Luisa Grey was invited to supply a Blog post for the Small Business Commissioner’s website. Small companies can collect what they are owed by Direct Debit – they just don’t know it!”

​A dangerous misconception has taken root among the nation’s SME community. It is a misconception that is costing SMEs hundreds of thousands of pounds every month. It is even driving profitable, viable businesses to the wall.

Here it is: “Our cashflow would be transformed if we could have our invoices paid by Direct Debit. But we can’t. We are just not big enough for the bank to even consider supporting an application from us. Direct Debit is only for big corporates like energy or mobile phone companies.”

If this misconception, that small businesses are barred from collecting payments by Direct Debit were corrected, the nation’s SMEs would see their cashflows transformed. And it needs to be addressed because it isn’t true.

The simple fact is that all the benefits that collecting monies by Direct Debit brings to large companies are equally available to SMEs. They just don’t know it.

The size of your company, its sector, and the number of Direct Debits you want to collect are not important. You can use Direct Debit to collect the money you are owed.

It doesn’t matter if you want to collect one Direct Debit a year or a 100 Direct Debits a day, if you partner with a Direct Debit Bureau, they will collect the money you are owed on time and in full, with no deductions. Once the money has cleared, it is transferred to your business account and will only take a few days.

A Direct Debit Bureau has all the accreditation, compliance and approvals needed to collect payments on your behalf via Direct Debit.

There are so many advantages to being paid by Direct Debit but the main one surely, must be the transformative impact it has on a company’s cashflow. Your company’s cashflow.

Maybe now, rather than existing inside your expensive overdraft, you can start to reduce it. Maybe now you can start planning for all the things you need but never had the liquidity to even consider.

Direct Debit, also, crucially breaks the endless, debilitating cycle of late payments. If you are paid on time and in full, then you can pay your suppliers on time and in full. Link by link the late payments chain is dismantled. The positive knock-on effect to the wider economy is incalculable.

Here’s another benefit: if you are willing to pay your invoices on time you could try and negotiate a discount from your suppliers.

One of the most familiar reasons for not being paid on time is this: “I can’t pay you because haven’t been paid.” It is a nasty vicious cycle, and we have all experienced it. Direct Debit removes that impediment to being paid.

Let us just put late payments into context. The last published research by Pay.UK in pre lockdown times showed that in September 2019, SME’s in the UK were struggling under a massive late payment debt burden of £23.4 billion. The year before, that figure stood at £13 billion. The amount SMEs were owed had risen by over £10 billion in a year. This level of debt is unsustainable. The UK is now known for having a culture of late payments.

Sadly, being paid late doesn’t just have an economic impact. It also brings with it emotional and mental health consequences. In the same survey, Pay.UK found that over a quarter (26 per cent) of business owners said that they stress about late payments even when they are not at work. Some 17 per cent said that payment delays undermine confidence in their ability to run a business. Almost ten per cent of business owners said they had considered seeking professional mental health support. All because businesses don’t pay each other on time.

As we begin, tentatively, to emerge from this pandemic, one of the key lessons must be ‘protect your cashflow’. We must act to become part of the solution. If you want to have your invoice amounts collected in full on the day the invoice is due, then being paid by Direct Debit is the only way to achieve this.

So, to close as we began, there is no barrier to SMEs collecting invoices by Direct Debit, just as the energy and mobile phone companies do.

Luisa Grey
Director
Eazipay

See what people are saying and how we are being rated in Google reviews:

★★★★★

James Simpson
SkinViva Ltd
Wonderful company. They offer a very efficient service with a quick turnaround time between Direct Debits being processed and the funds being transferred to your business. They provide good reporting that has helped our business gain a better understanding of our own clients. We've been with Eazipay for several years and all throughout that time we have received great customer service that has a very personal feel to it. It can often feel like you're their only customer!

★★★★★

Michelle
John Cashin Tuition
We have been using Eazipay for our private tuition business for approximately seven years and we couldn't be more impressed. Deciding to use Eazipay has been one of the best decisions we have made. It is so much easier for me now that I do not have to chase customers for payment, it's all done for us - like clockwork. The staff are so helpful, courteous, friendly and super efficient. A very professional service indeed. For me Eazipay are worth their weight in gold!

★★★★★

Mark Ward
Midland Tech
Midland Tech have been using Eazipay for nearly four years and the service has been excellent. It's easy to use, payments are received promptly, and customer service is very good. Emails are answered quickly, nothing is too much trouble, and everyone you deal with is very knowledgeable and friendly I would recommend Eazipay to anyone.

★★★★★

Oliver Thompson
CCCit
We have been using Eazipay to take direct debit payments from our clients since 2008. As a long standing customer our business could just not run without the assurance that we are going to get paid on time. Eazipay has allowed us to grow our business without the hassles involved in collected numerous monthly payments. We really appreciate all the hard work and expertise that the team at Eazipay bring to our business. Thank you from everyone at CCCit

★★★★★

Andrew Straton
Yorkshire Dales Sailing Club
Eazipay have been collecting Direct Debits on behalf of the Yorkshire Dales Sailing Club since 2009 and we have never looked back! It has made our administration, run entirely by volunteers, so much easier and saved us large amounts of cash by not having to post reminders to members every year. Thank you EAZIPAY, you do a great job and I would (and have) recommend you highly to anyone thinking of using a Direct Debit system in the future.

★★★★★

Emma Statham
We have been using the services that Eazipay Ltd offer for some years now and cannot recommend them highly enough. in a nutshell, they offer an incredibly professional, personal , and faultless service allowing us to collect direct debit payments from some of our customers, hassle free. Natalie Terris is our account manager, and she is helpful, friendly and knowledgable. All our queries are dealt with simply and swiftly. All the Eazipay processes we use are simple to use. We wouldn't go anywhere else- Thanks Eazipay! x

★★★★★

121 IT Services Ltd
We started working with Eazipay in September 2013 and since that time they have made both our clients and 121 IT's life so much simpler. The staff are great, friendly and very good at what they do. Would totally recommend them, thank you.

★★★★★

Mark Wyatt
Telecom Network Services
Telecom Network Services has been a customer of Eazipay for 14 years, since I started the business. The staff at Eazipay are outstanding, always efficient and process payments accurately and on time everytime! I recommend Eazipay Ltd, they are a great company to do business with.

★★★★★

Steven Bourne
We have been a client of Eazipay for over two years now and the service is excellent. There is always someone available on the end of the telephone to deal with any queries and it is a very professional set up. The way in which the system operates is very straightforward and we save hours of time and hassle compared with using the old method of standing orders. I would thoroughly recommend Eazipay to any business which wants to make collecting money easy!

★★★★★

Emma Martineau
Phones 4 Business started collecting payments by Direct Debit in 2007. We chose Eazipay and have never looked back. I daren't calculate how much time I have saved in using Eazipay and staying with them is a no brainer! Why change when I have such a good supplier? It is service that counts; Natalie Terriss and the whole team are always very friendly, efficient and reliable. I have no hesitation in recommending them.

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