So you have heard about recurring 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 simple method 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 subscription billing? Subscription billing is used by businesses to charge 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 charge 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.
So now that we have seen what it is, let's find out how recurring billing can benefit your business:
Keep the cash rolling in
Subscription billing is not just for large corporate or enterprise type businesses. You as a small business owner or freelancer can also implement subscription billing procedures in your business at a surprising low cost. Recurring billing for the SMME truly does pay off.
Subscription 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 putting your customer 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 customer.
Constantly having to worry about when you will receive payment from your client's means you never have a chance to plan in advance. Subscription billing provides you the option to project income over several months. As payments are recurring and repeat on a scheduled basis you know exactly what date you will be receiving what amount. Excellent for planning your businesses budget and scheduling your own debits.
Don't forget to remember
Recurring billing means timely payment. Clients can't forget to pay because now payment collection is automated. You don't have to wait around anymore for late payment or have to deal with clients claiming they forgot about making payment. You get your money when you require it - hassle-free. Clients still have the freedom however to select their own debit dates according to invoice due date, so everyone's glad.
Spend less on payment collection and administration
Payment gateways that facilitate subscription payments usually offer automatic account reconciliation or provide bulk reconciliation files that allow easy and accurate resolution 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 effect 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, recurring billing automatically takes care of their payment when it's required.
Wow, that sounds great! But how do I get started? Joining a payment gateway and payment facilitating system is step one. Find a gateway with competitive fees and a facilitator that allows automatic account recon.
Ask yourself, what is subscription billing? Subscription billing is used by businesses to charge 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 charge 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.
So now that we have seen what it is, let's find out how recurring billing can benefit your business:
Keep the cash rolling in
Subscription billing is not just for large corporate or enterprise type businesses. You as a small business owner or freelancer can also implement subscription billing procedures in your business at a surprising low cost. Recurring billing for the SMME truly does pay off.
Subscription 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 putting your customer 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 customer.
Constantly having to worry about when you will receive payment from your client's means you never have a chance to plan in advance. Subscription billing provides you the option to project income over several months. As payments are recurring and repeat on a scheduled basis you know exactly what date you will be receiving what amount. Excellent for planning your businesses budget and scheduling your own debits.
Don't forget to remember
Recurring billing means timely payment. Clients can't forget to pay because now payment collection is automated. You don't have to wait around anymore for late payment or have to deal with clients claiming they forgot about making payment. You get your money when you require it - hassle-free. Clients still have the freedom however to select their own debit dates according to invoice due date, so everyone's glad.
Spend less on payment collection and administration
Payment gateways that facilitate subscription payments usually offer automatic account reconciliation or provide bulk reconciliation files that allow easy and accurate resolution 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 effect 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, recurring billing automatically takes care of their payment when it's required.
Wow, that sounds great! But how do I get started? Joining 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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