Most SMME owners have heard the term "subscription billing", but few make use of it or understand what benefits it can hold for their business. Let's start off with getting an exact idea of what recurring billing is and then move on to investigating how integrating it in your business can increase your cash-flow and save you money.
So, recurring billing, what is it? Subscription billing will charge an amount more than once to your credit card or bank account. The amount is usually the same and recurs on the same date each month. But recurring billing can also happen for varying amounts on any term or frequency on any date. Recurring billing is great for charges that never change in amount, for example: A monthly subscription to your favorite magazine.
So now that we have seen what it is, let's find out how recurring billing can assist your business:
Enable better cash-flow
If like many other small business owners and freelancers you think that recurring billing is solely 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 recurring billing in your own small business.
Implementing subscription billing in your SMME means better cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their clients 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 sporadic small payments or even worse, late payments.
This means you are uncertain of your cash-flow. This in turn leads to you not being able to plan in advance. Not being able to predict 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 expansion of your business.
Don't forget to remember
Clients who forget to pay their invoices on time can seriously affect your business. Waiting for late payment is very unproductive. Recurring billing eliminates the need to wait for late payment and because it happens automatically means the client does not need to remember to actually pay you each month. It's a great way to collect hassle-free timely payments.
Spend less on payment collection & administration
Payment gateways that facilitate subscription payments usually offer automatic account recon or provide bulk reconciliation files that allow simple and accurate consolidation of customer payments. This in turn translates to big savings in time and money on your side. No need to employ many staff members to collect payment and control recon, 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 due.
Sounds awesome! Sign me up! Find the best resources for subscription billing systems online or ask other business owners for recommendations. We suggest signing up with a gateway that automates subscription billing and a payment facilitator that allows automatic account recon.
So, recurring billing, what is it? Subscription billing will charge an amount more than once to your credit card or bank account. The amount is usually the same and recurs on the same date each month. But recurring billing can also happen for varying amounts on any term or frequency on any date. Recurring billing is great for charges that never change in amount, for example: A monthly subscription to your favorite magazine.
So now that we have seen what it is, let's find out how recurring billing can assist your business:
Enable better cash-flow
If like many other small business owners and freelancers you think that recurring billing is solely 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 recurring billing in your own small business.
Implementing subscription billing in your SMME means better cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their clients 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 sporadic small payments or even worse, late payments.
This means you are uncertain of your cash-flow. This in turn leads to you not being able to plan in advance. Not being able to predict 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 expansion of your business.
Don't forget to remember
Clients who forget to pay their invoices on time can seriously affect your business. Waiting for late payment is very unproductive. Recurring billing eliminates the need to wait for late payment and because it happens automatically means the client does not need to remember to actually pay you each month. It's a great way to collect hassle-free timely payments.
Spend less on payment collection & administration
Payment gateways that facilitate subscription payments usually offer automatic account recon or provide bulk reconciliation files that allow simple and accurate consolidation of customer payments. This in turn translates to big savings in time and money on your side. No need to employ many staff members to collect payment and control recon, 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 due.
Sounds awesome! Sign me up! Find the best resources for subscription billing systems online or ask other business owners for recommendations. We suggest signing up with a gateway that automates subscription billing and a payment facilitator that allows automatic account recon.
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 a subscription billing system for free.
