Cash is the lifeblood of every business, but sometimes getting cash into the business is harder than it should be. Subscription payment services and recurring billing are great ways to automate and improve business processes and get cash into your business efficiently and regularly.
How do recurring payments work?
Recurring payments are payments from customers that happen automatically, on a regular schedule. Setting up a recurring payment is easy.
First, you need a processor (like PaySimple) to make recurring payments. Then, you need written permission from your customer to start a subscription billing program (and when you work with PaySimple, we provide you those materials).
Once you have your customer’s permission on file, you upload their payment information into the system. Then, with a few clicks of your mouse, you’ll set up the billing intervals, and you’re done! The billing process will continue to recur for your client, and you’ll be able to spend your time working on your business instead of in your business.
Who should use recurring payments?
Recurring payments are great for businesses that bill their clients the same amount of money over a certain period. For example, a non-profit might automatically use recurring payments to receive an agreed-upon monthly pledge from donors.
A business with a monthly subscription option benefits because clients pay automatically every month as opposed to paying one large amount upfront. Finally, service providers like coaches, tutors, therapists, and instructors benefit because they automatically bill clients instead of waiting for payment after services have been rendered.
Benefits of automated subscription payment services
There are many benefits of automated subscription payment services for consumers and business owners.
Predictable cash flow
One of the most challenging parts of being a business owner is managing cash flow. With a subscription service, your cash is predictable, allowing you to plan and make spending decisions more easily.
Many customers like automated subscription payment options because it saves them time. They don’t worry about making sure their bill is paid because it’s automatic. If your clients are busy people who value convenience, this is a must-have to stay competitive.
Many small businesses store credit card information in physical folders or spreadsheets when they first get started. Unfortunately, this involves a lot of risk for both the customer and the business owner. These files are easy to hack, and hackers prey on small business owners because they expect their security to be lacking. Automated payment services are ideal because they encrypt this type of information and make it more difficult for hackers to access.
As consumers focus more and more on the environment, being environmentally conscious is a differentiator in the market. In addition, leveraging an automated subscription payment service saves paper and energy because you don’t have to print and mail the bill.
Saves time and money
Some small business owners use a spreadsheet and manually process transactions. While this can work for small numbers of transactions, it is not efficient as a business starts to grow. One of the big benefits of an automated subscription payment service is that it saves an incredible amount of time and money. For example, activities that may have taken hours can become instant, and costs are reduced. Your employee is now free to help grow the business.
Ready to Grow
By leveraging automation tools, you save time, money AND energy by creating systems that will be the foundation of a thriving and growing business. Plus, the sooner you get started, the easier it will be, and you can avoid the growing pains associated with switching systems later down the road.