So you have heard about subscription billing, but think it's only for big enterprise type businesses. Did you know that you can add recurring billing to your SMME to enhance your cash-flow and give your clients a truly simple method to pay? Before we look at how recurring billing can benefit your business, let me walk you through a basic definition of what recurring billing really is:
Ask yourself, what is recurring billing? Subscription billing is used by businesses to bill clients 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 repeat 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 subscription billing can make your business better:
Keep the cash coming in
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 hear that recurring billing can work wonders for your SMME as well. You can quite simply and very cost effectively implement subscription billing in your own small business.
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 haphazard small payments that incur transaction fees for both you and the client.
If you are always unsure of when you will get your payment from your customer you can never plan ahead. This is where recurring billing saves the day. Now you know when you will be paid and can even work out a projected payment amount based on past success rates. This healthy cash-flow and ability to plan in advance really does mean that your business can grow quickly.
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 relax and you watch 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 precisely when you are going to get paid.
Slash administration costs
Ensuring the bulk of your customers pay via subscription billing means less administration tasks for you and your clients. Administration is less on the customers side because payment is automatic. The client 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 reduced on your side because you do not have to recon hundreds of small individual payments. Gateways that facilitate subscription payments usually offer automated account reconciliation or provide bulk recon files that allows easy and accurate consolidation.
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 reconciliation.
Ask yourself, what is recurring billing? Subscription billing is used by businesses to bill clients 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 repeat 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 subscription billing can make your business better:
Keep the cash coming in
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 hear that recurring billing can work wonders for your SMME as well. You can quite simply and very cost effectively implement subscription billing in your own small business.
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 haphazard small payments that incur transaction fees for both you and the client.
If you are always unsure of when you will get your payment from your customer you can never plan ahead. This is where recurring billing saves the day. Now you know when you will be paid and can even work out a projected payment amount based on past success rates. This healthy cash-flow and ability to plan in advance really does mean that your business can grow quickly.
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 relax and you watch 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 precisely when you are going to get paid.
Slash administration costs
Ensuring the bulk of your customers pay via subscription billing means less administration tasks for you and your clients. Administration is less on the customers side because payment is automatic. The client 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 reduced on your side because you do not have to recon hundreds of small individual payments. Gateways that facilitate subscription payments usually offer automated account reconciliation or provide bulk recon files that allows easy and accurate consolidation.
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 reconciliation.
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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