So you have heard about subscription billing, but think it's only for big enterprise level businesses. Did you know that you can add subscription billing to your SMME to enhance your cash-flow and give your clients a truly hassle-free method to pay? Before we look at how subscription billing will benefit your business, let me walk you through a basic definition of what subscription billing really is:
So, subscription 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 recurring billing can also happen for variable amounts on any term or frequency on any date. Subscription billing is prefect for bills that never change in amount, for example: An annual subscription to your favorite magazine.
We know what it is now, but what can subscription billing do for you and your business?
Keeping your cash-flow healthy
Recurring billing is not just for large corporate or enterprise type businesses. You as a business owner or freelancer can also implement recurring billing procedures in your business at an extremely low cost. Subscription billing for the SMME really does pay off.
Integrating subscription billing in your SMME means improved cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their customers to pay via bank deposit or electronic funds transfer only. This means that your clients have the control over when they pay you. Sometimes resulting in haphazard small payments or even worse, late payments.
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 growth of your business.
Don't forget to remember
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 debited on the dates specified. This means no more late payment or waiting for urgently needed money to clear. You now know exactly when you are going to get paid.
Decrease administration
Payment gateways that facilitate recurring payments usually offer automatic account recon or provide bulk reconciliation files that allow simple and accurate resolution of customer payments. This in turn translates to massive savings in time and money on your side. No need to employ many staff members to collect payment and effect reconciliation, save money. Your clients 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 required.
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 allows automatic account recon.
So, subscription 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 recurring billing can also happen for variable amounts on any term or frequency on any date. Subscription billing is prefect for bills that never change in amount, for example: An annual subscription to your favorite magazine.
We know what it is now, but what can subscription billing do for you and your business?
Keeping your cash-flow healthy
Recurring billing is not just for large corporate or enterprise type businesses. You as a business owner or freelancer can also implement recurring billing procedures in your business at an extremely low cost. Subscription billing for the SMME really does pay off.
Integrating subscription billing in your SMME means improved cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their customers to pay via bank deposit or electronic funds transfer only. This means that your clients have the control over when they pay you. Sometimes resulting in haphazard small payments or even worse, late payments.
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 growth of your business.
Don't forget to remember
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 debited on the dates specified. This means no more late payment or waiting for urgently needed money to clear. You now know exactly when you are going to get paid.
Decrease administration
Payment gateways that facilitate recurring payments usually offer automatic account recon or provide bulk reconciliation files that allow simple and accurate resolution of customer payments. This in turn translates to massive savings in time and money on your side. No need to employ many staff members to collect payment and effect reconciliation, save money. Your clients 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 required.
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 allows automatic account recon.
About the Author:
Susan Bapsnill is an expert at business billing. She recommends subscription billing to automate your billing procedures. Click here to try a subscription billing system for free.
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