DD payments...Please Help!

[Michae]

Hi

We are looking to expand our product line in the near future, theres a good chance one particular service will require us to claim a DD payment from clients. I'm trying to source the most cost effective way of doing this?

Secondly, do any organisations claim DD payments on your companies behalf, if so what are the cost implications?

Please advise...

 

[Michae]

Hummm

Perhaps ive posted this in the wrong forum!!

Doh!

 

[uksbc]

hi Michael,

I would say in your early stages go for Standing Order rather than DD.

You dont have to set anything up with your bank at all. The only downside against DD is they can only be used for the same fee every month like a rental charge, not a constantly changing fee like a phone bill

Hope this helps a little

 

[amcphillips]

hi Michael,

I would say in your early stages go for Standing Order rather than DD.

You dont have to set anything up with your bank at all. The only downside against DD is they can only be used for the same fee every month like a rental charge, not a constantly changing fee like a phone bill

Hope this helps a little

Thats not true. I work in finance and direct debits take varying payments each month according to what the minimum payment is.

 

[Astaroth]

I think the disadvantage was supposed to be about the forementioned standing orders rather than DDs

 

[uksbc]

I think the disadvantage was supposed to be about the forementioned standing orders rather than DDs

yes, sorry if i worded it badly. i did mean that standing orders are fixed amounts but direct debits are flexible

 

[amcphillips]

Ah I really need to start reading things properly!

 

[DuaneJackson]

There is a company that take DD's on your behalf. One of our suppliers use them and speak highly of the service/company. I'll see if I can find their name.

 

[Ozzy]

I have DD facilities setup myself within my company, and it was very straight forward and easy. It also makes it much easier to manage your income from regular monthly payments.
You need to prepare a full business plan and financial forecasts for your bank, then book a meeting with your relationship manager. It takes a few weeks to get up and going, but once it is then its just a case of putting together a monthly schedule.
When setting up a payee on the system you set whether it is a fixed amount or a variable amount, and the frequency (weekly, monthly, quarterly, etc).

Most amusing of all.... It all works on a modem and not over the Internet!!! Banks are sooo far behind teh times. So I had to go out and buy an old modem and get a phone line installed next to the accounts PC to work with it.

 

[Astaroth]

Working for a bank.... they are on the verge of being paranoid about security of information both business and customer. Our work laptops can only connect by a direct dialup and no option for VPN or even something basic like webmail so it doesnt surprise me that their DD systems again require a direct dialup rather than trusting online communication channels.

 

[Michae]

Thanks Duane!

I think getting someone else to do it might be the way ahead for the time being! Do they also chase up bad debtors?

 

[Michae]

Sorry I forget to ask, does any one have any idea of how much it costs to have your DD's collected for your business?