With a recurring billing platform, businesses can speed up the payment process and make invoicing much easier for both them and their consumers.
Invoicing can be a strenuous, time-consuming process. Even after a purchase is complete, late payments can delay revenue for months.
In fact, 53% of small businesses consider cash flow to be their top business challenge, according to the Bureau of Labor Statistics, and 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, wasting valuable time and decreasing cash flow significantly.
Fortunately, businesses can accept recurring payments online.
Recurring billing gives businesses the ability to manage recurring billing with ease, set custom beginning and ending dates, and choose exactly how long the billing cycle will last.
Here are 5 reasons your business should use a recurring billing platform.
1. Improve Operational Efficiency
With a recurring billing platform, customers are invoiced 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 are also beneficial for customers with large accounts who want a certain amount of their balance paid off every month.
For example, if you have 50 customers that are billed each month, recurring billing removes 50 sets of invoices from your workload. Your customers will receive invoices automatically, and you will have more time to focus on gaining new business.
2. Reduce Manual Data Entry
Businesses that manually generate invoices and input customer data run the risk of human errors, as well as missing or inaccurate information.
Recurring billing is a simple billing process that automates invoicing for both businesses and customers.
Instead of having to input credit card information manually every time a customer places an order, you can program your accounting system or payment gateway to deliver an order to a customer and charge their credit card at specific times.
Recurring billing reduces the risk of duplicating or missing 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 making sure businesses receive more timely payments each month.
A recurring billing platform lowers processing costs by removing the need to generate invoices on a monthly basis. In addition, you can reduce negligent payments and balance Accounts Receivable each year.
4. Maintain Data Security
Many recurring billing platforms use a secure payment gateway equipped with tokenization technology to safeguard sensitive customer data. Tokenization substitutes credit card information with a unique token that is only decipherable with the proper tokenization system.
By accepting payments online, businesses never see customer credit card information. The tokenized data is completely different from the original number, and is only visible in the payment system.
Recurring billing is a secure process that protects both the business and the customer.
5. Get Paid Faster
According to Pew Research Center, 69 million Americans bank online. With recurring billing, businesses no longer need to keep calling their customers to receive payments. Instead, customers are billed automatically, and can settle invoices as soon as they become available online. As a result, you gain the advantage of balancing your books and planning for the months ahead.
With this simple billing process, your customers will value the convenience of automatic billing, and your business will be more likely to get paid 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 set up recurring payments to be sent to your customers at the frequency of your choice, and returning customers can have their payments schedules automatically.
Take advantage of recurring billing to increase cash flow, reduce manual data entry, improve operational efficiency, maintain data security, and get paid faster!