For many small businesses, holiday periods can be a time of both pleasure and pain. Everyone loves a holiday, but when you rely on periodical payments from clients and customers to keep your cash flow alive, it can also be a worrying time if you don’t have the right systems in place.
Constant cash flow
Using a direct debit billing system like PaySmart can help moderate your cash flow, so even when you’re taking a holiday, the direct debits will continue to land.
“Working with PaySmart has provided a steady stream of cash flow into my business. It’s helped me to better run my business and improve my cash position— I can go on a holiday and the money still goes in the bank!”
—Hayley Becket, absonfitness Personal Training Studio
Convenient for your customers
With a direct debit billing system in place, even when clients and customers get busy during the silly season, their bills are paid automatically and won’t add to their to-do list. It also means your invoice won’t become lost in a pile of Christmas mail, so you won’t be spending January following up overdue payments.
Direct debit billing also provides consistency and continuity, so you don’t have the pressure of encouraging customers back after the holiday period or resigning them—your association is uninterrupted and ongoing, which contributes to developing long-term customer relationships.
Other things businesses can do to manage risk and keep relationships strong ahead of the quieter periods in December and January:
1. Start a campaign to ensure customer payments continue to come in during the festive season.
2. Communicate directly with each customer to recap on their achievements with you during the year or the service you’ve provided—remind them of the value delivered to reduce the likelihood of cancellations.
3. Build upon results from this year and look towards the next to keep your momentum going.
Ultimately, anything you can do to reduce cancellations, and increase sales will set you up for a successful start to the New Year.
Talk to your local PaySmart Business Development Manager for more tips or to get started with PaySmart today.