5 Reasons Your Business Should Use A Recurring Billing Platform
The invoicing process consumes time and causes stress. Even after a purchase is complete, late payments can delay revenue for months.
In fact, 53% of small businesses consider cash flow their top business challenge, according to the Bureau of Labor Statistics. More than one-third of B2B receivables aren’t paid on time. As a result, businesses are forced to contact customers and request payment for their products. This wastes valuable time and decreases cash flow significantly.
Fortunately, businesses can accept recurring payments online. Recurring billing gives businesses the ability to manage payment schedules and set custom beginning and ending dates for each billing cycle.
Here are 5 reasons your business should use a recurring billing platform.
1. Improve Operational Efficiency
With a recurring billing platform, customers receive invoices on a set schedule. If you operate a subscription-based business or have customers on terms, recurring payments can free up a great deal of time for your company. Recurring payments also benefit customers with large accounts who want to pay off a certain portion of their balance each month.
For example, if you have 50 customers who pay the same amount each month, you can set up recurring billing for them and remove 50 sets of invoices from your workload. Your customers will receive invoices automatically, and you will have more time to focus on acquiring new business.
2. Reduce Manual Data Entry
Businesses that manually generate invoices and type in customer data run the risk of human error, as well as omitting or misreporting information.
Instead of having to input credit card information manually every time a customer places an order, recurring billing allows you to program your accounting system or payment gateway to deliver an order to a customer and charge their credit card at specific intervals.
Recurring billing reduces the risk of accidentally duplicating or losing invoices, and helps to ensure more accurate data.
3. Increase Cash Flow
One-third of businesses say that maintaining cash flow is the greatest challenge to profitability. Recurring billing helps ensure a more reliable cash flow by helping businesses receive monthly payments on time.
A recurring billing platform lowers processing costs by eliminating the need to generate new invoices on a monthly basis. In addition, you can reduce negligent payments and balance your Accounts Receivable each year.
4. Maintain Data Security
Recurring billing is a secure process that protects both the business and the customer.
Many platforms that support recurring billing use a secure payment gateway equipped with tokenization technology to safeguard sensitive customer data. Tokenization substitutes credit card information with a unique token that only the proper tokenization system can decipher.
Businesses that accept payments online never see customer credit card information. The tokenized data is completely different from the original number, and is only visible in the payment system.
5. Get Paid Faster
According to Pew Research Center, 69 million Americans pay their bills online. Recurring billing simplifies the process by automatically billing customers, giving them the ability to settle invoices as soon as they become available online. This relieves businesses of the burden of hounding their customers via phone or email to make payments. As a result, they gain the advantage of balancing their books on time and using payment data trends to plan for the months ahead.
Implementing this simple billing process will improve your customers’ transaction experience, and increase the likelihood that your business will receive payment on time.
Accept Recurring Payments Online
Using a recurring billing platform can accelerate the invoicing process and make payments easier for both you and your customers. You can schedule recurring invoices at the frequency of your choice, and returning customers can schedule automatic payments.
Take advantage of recurring billing to increase cash flow, reduce manual data entry, improve operational efficiency, maintain data security, and get paid faster!