One of the secrets of running a successful business is getting the many smaller details right. Managing your payments is an essential part of business. A large number of these payments will be recurring over various periods of time – weekly, bi-weeky, monthly, quarterly, half yearly, or annually.
With the right recurring payments collection in place, you can ensure they are collected on time without manual intervention or workforce allocation. All you need to do is follow the right mandate registration process and enable collection with minimal risk of collection failure. Payments will arrive in your business accounts in time and you can focus on other aspects of growth.
Let’s look at the advantages of recurring payment collection
Predictable Cash Flow
With a good forecast of future cash flow, you can estimate your organisation’s growth with confidence. This gives you a strong idea of how many months you can sustain and pay for business costs like salaries, rent and inventory without making changes or needing to take a new approach. It also gives you a fair idea of the disruption that you can potentially experience when you take on new potentially risky business directions.
Better Financial Planning
With your cash flow mapped out, you have a better view of where extra money can be diverted and how it will impact all other business units. The result: quality budgeting, sharper focus on long term growth, and a wide view of where the best investment potential is.
Lower Financial Stress
A wider scope of secure finances helps you avoid cash shortfalls, late payment fees, and business loan repayment defaulting. The foresight into cash flow helps you prioritise your monetary resources to avoid any kind of imbalanced finances.
Higher Profitability
Make the switch to consistent, higher profits as a result of lower administrative costs. With automated, reliable payment processes to replace manual collection, your overheads are significantly reduced.
Robust Scalability
Seize every opportunity for growth now that you have the cost of present processes covered and have a fair knowledge of how much excess funds exist. Knowing that new growth will not affect prior business and costs is the only freedom you need to confidently take on new goals and start the process.This could include increasing your employee base, launching new products and services, or making new investments.
Greater trust among customers and employees
When it is established that your business income is consistent and automated, everyone linked to your business wants to have more confidence in your claims and assurances. Clients get the signal that you are a stable company and remain loyal. This means repeat business (which also means growing business). Employees will invest themselves into the company ethos and purpose more, once they know that they work for an organised, vision-filled organisation.
Better reputation with investors and creditors
Staying in business means winning the approval of the investors and creditors. With automated recurring payments collection that projects your future finances, you don’t need to make a large case. They know that you are engaging in practices that are protecting their investments and loan amounts.
The big competitive edge
Being agile in a fast growing market involves having an advantage that most organisations around you may not have. The foresight that automated recurring payment collection gives you allows you to gauge opportunities like acquisitions or partnerships and jump in fast. Other organisations may have to take some time to assess their readiness.
This principle also works with pricing. They define customer engagement the most. With a steady income forecast, you are better placed to offer prices that are lower without sacrificing financial stability.
Big Focus on Core Activities
With recurring payments collection on automation, you have the freedom to improve other areas of business like innovation or customer service. An applied focus to these areas will lead to a further increase in business.
Better protection from industry uncertainties
There will always be ups and downs in business. A recurring payment collection system helps you ensure that you are protected well from the challenges that come along the way. It helps you use the strength of financial stability against sudden changes and rise above them.
With all these benefits, you can clearly see that setting up recurring payments collection will only do wonders for your business. It’s time to leverage your business’ best prospects with Paycorp – the fastest growing recurring payment collection platform in India.
