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 improve your cash-flow and provide your clients a truly easy way to pay? Before we look at how subscription billing can benefit your business, let me walk you through a basic definition of what subscription billing really is:
Ask yourself, what is recurring billing? Recurring billing is used by businesses to charge customers a specified amount more than once. The amount can differ, but is usually the same on every recurrence and the term on which the debit is submitted can recur on any frequency e.g. weekly, monthly, annually etc. Charges can be submitted to your credit card, bank account or account with a payment gateway.
Now that we know what recurring billing is, let's see how recurring billing can make your business better:
Keeping your cash-flow in top shape
If like many other business owners and freelancers you think that recurring billing is only for enterprise or corporate entities, you will be surprised to learn that subscription billing can work wonders for your SMME as well. You can quite simply and very cost effectively implement recurring billing in your own small business.
Subscription billing for your SMME means a healthy, increased cash-flow. Billing on a recurring term is also much less hassle compared to manual collection. Manual collection usually means putting 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 client.
Constantly having to worry about when you will receive payment from your client's means you never get a chance to plan in advance. Subscription billing provides you the ability to project income over many months. As payments are recurring and repeat on a scheduled basis you know exactly what date you will be receiving what amount. Great for planning your businesses growth and scheduling your own debits.
Get your money on time
Subscription billing allows you to control when you get paid. It's easy, when client's 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 money to clear. You now know precisely when you are going to get paid.
Spend less on payment collection and administration
Ensuring the bulk of your customers pay via subscription billing translates to reduced administration tasks for you and your customers. Administration is less on the client's side because payment is automatic. The customer no longer needs to go into a bank to make a direct deposit or login to Internet banking to manually make a wire transfer. Administration is also less 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.
It all sounds excellent! How do you get started? We suggest you sign up for a payment facilitator that automates account recon and shop around for a payment gateway that enables your business to bill recurrently.
Ask yourself, what is recurring billing? Recurring billing is used by businesses to charge customers a specified amount more than once. The amount can differ, but is usually the same on every recurrence and the term on which the debit is submitted can recur on any frequency e.g. weekly, monthly, annually etc. Charges can be submitted to your credit card, bank account or account with a payment gateway.
Now that we know what recurring billing is, let's see how recurring billing can make your business better:
Keeping your cash-flow in top shape
If like many other business owners and freelancers you think that recurring billing is only for enterprise or corporate entities, you will be surprised to learn that subscription billing can work wonders for your SMME as well. You can quite simply and very cost effectively implement recurring billing in your own small business.
Subscription billing for your SMME means a healthy, increased cash-flow. Billing on a recurring term is also much less hassle compared to manual collection. Manual collection usually means putting 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 client.
Constantly having to worry about when you will receive payment from your client's means you never get a chance to plan in advance. Subscription billing provides you the ability to project income over many months. As payments are recurring and repeat on a scheduled basis you know exactly what date you will be receiving what amount. Great for planning your businesses growth and scheduling your own debits.
Get your money on time
Subscription billing allows you to control when you get paid. It's easy, when client's 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 money to clear. You now know precisely when you are going to get paid.
Spend less on payment collection and administration
Ensuring the bulk of your customers pay via subscription billing translates to reduced administration tasks for you and your customers. Administration is less on the client's side because payment is automatic. The customer no longer needs to go into a bank to make a direct deposit or login to Internet banking to manually make a wire transfer. Administration is also less 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.
It all sounds excellent! How do you get started? We suggest you sign up for a payment facilitator that automates account recon and shop around for a payment gateway that enables your business to bill recurrently.
About the Author:
Susan Bapsnill is an expert at business billing. She recommends a subscription billing system to automate your billing procedures. Click here to try subscription billing for free.
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