Direct Debit Blog

When it comes to making payments, it’s important to choose the best method available for a specific transaction.

Whether it’s spare change for a mid-morning coffee or a recurring Direct Debit for your office utility bills, getting it right can save you time and hassle.

For time-sensitive, high-value transactions, CHAPS payments will likely be the best fit.

Here we explore what they are, how they work and when your business may need to use them.

More and more businesses are turning to online payments for maximum speed, convenience and security. Compared to trusty traditional methods, tech-enabled transactions deliver on many levels.

One of the most popular methods is the Faster Payments scheme, a simple and quick way to send and receive funds electronically. Billions of transactions are completed this way every year, from buying online groceries to paying back the £20 your friend lent you on a night out.

And their power can extend beyond personal use to simplify how your business makes and receives payments.

Here we explore what they are, how they work and why they could be the perfect fit for your business.

Balancing the books is a challenge faced by businesses large and small, whether a start-up or established player.

It’s no different for digital agencies. Positive cash flow does more than just pay the bills and wages. It fuels growth, instilling the confidence to aim high and dream big.

So when it comes to running a successful digital agency, there’s no room for cash flow complacency.

Here we explore why having a healthy net cash flow each month is so important. How it can free you up to focus on delivering exceptional client work and making plans for a bright future.

A credit note is a type of legal document, similar to an invoice that is sent from a business (seller) to its customer (buyer). It details a credit that is owed against a previously issued invoice. This credit note can then either cancel out that invoice, or reduce its amount.

Credit notes are an essential element to invoicing that every business should know about, and will likely use. Although they aren’t issued as regularly as quotations, invoices, purchase orders or receipts, they are a standard document.

They enable an invoice amount to be deleted, but not the invoice itself. Deleting invoices is illegal in many countries as businesses must keep clear, traceable financial records.

Every Christmas there’s a stampede by parents to get that season’s ‘hot’ toy – or risk upsetting their kids. This frenzy can also be seen when the latest gadget hits the shelves, or the newest smartphone goes on sale.

Not long ago, lines of readers queued up outside bookstores to get the next Harry Potter. Fashionistas join waiting lists for the new season’s ‘it’ handbag and Disney fans in the UK are poised to join the Disney Plus streaming service the moment it goes live in 2020.

Debtors and creditors are central to how every business’ financial system operates.

They influence the amount of money flowing into and out of an account and the speed at which it arrives.

Understanding them and how they work in conjunction with each other is essential for businesses large and small. But the difference between the two can easily become confused.

So what is a debtor and what is a creditor?

Whether you run a small start-up or a multi-million-pound corporation, understanding the importance of invoice best practice is essential.

The success of your business relies on an efficient system that issues invoices and collects payments smoothly and reliably. A system that secures predictable cash flow and minimises the number of late and non-payments.

Industry approaches to invoicing differ depending on the business model and type of work performed or product supplied. The invoice could be for a one-off payment, a recurring set fee or a variable amount depending on usage.

The invoice document itself could have different information detailed in it depending on what’s required. And small business invoicing could vary significantly from that of huge multi-national corporations.

Here we detail some of the different kinds of invoicing to help you identify what is the best route for your business.

Running a digital agency has its fair share of challenges: attracting clients, producing quality work to retain those clients and, of course, getting paid by them reliably.

Invoicing can easily become a major headache. Who wants to spend time on dull spreadsheet management, manual invoice processing and the awkward chasing of late payees?

Whose heart doesn’t sink when a promising project grinds to a halt before the first payment has hit their account? And who’d choose to deal with the everyday uncertainty of unpredictable income?

You’ve done the hard work. You’ve set up a new business and worked tirelessly to chase down leads, secure custom and build your client base. But the dedicated effort doesn’t end there, in fact it’s only just begun.

Now comes a focus on client management to establish strong customer relationships and retain that hard-won custom.