All over the world, businesses are dropping the concept of a one-off payment in favour of pay monthly schemes.
Whether it’s a music streaming service, a mobile phone provider, or even a furniture retailer, it seems that these monthly payment schemes offer a variety of benefits for the business and the consumer.
So here’s a reminder of the key reasons as to why monthly payment schemes are the way forward for any 21st century business.
Improved cash flow
All business owners will know how cash flow is one of the hardest issues to regulate. But once a customer has set up a direct debit that delivers regular payments for a product, it will ensure that you’ll know exactly how much money your business will be receiving each month.
Whilst this doesn’t have the benefits of receiving a large one-off payment, it does mean that your business will gain greater stability and improve your ability to make long term plans.
Plus anybody who’s suffered the frustration of having to chase up a late payment will instantly understand how monthly payments can seriously bring down stress levels within the business!
Increased customer retention
Whilst pay monthly schemes have the obvious positive effect of bringing down the perceived price of your product, persuading a customer to spread the costs of their purchase across a period of several months can also have the added benefit of improving customer retention.
And it’s not only services like insurance that have no fixed end point that can benefit from this approach. This is because even the finance deals, like the offers for beds at Bedstar, have the clear advantage of keeping the brand in the customer’s mind in a way that’s worth so much more than blanket advertising.
Minimised administrative costs
Regardless of whether you do your own business’ books or hire in an accountant, the regular and timely payments of a monthly scheme also drastically reduce the amount of administrative effort needed to run your firm.
As well as the benefits of having a direct debit guarantee to cover both parties, it also means that you’ll be spending less time staring at your spreadsheets and can instead concentrate on making your business grow.
Less environmental impact
And finally, there’s also the added benefit of monthly payment schemes helping to minimise our environmental impact upon our planet.
By switching to paperless ways of making and receiving payments, it will not only reduce your company’s carbon footprint, but it will also cost you less in terms of buying paper supplies too.
So that whether it’s a monthly beds on finance scheme that requires no deposit, or even a simple direct debit plan, it’ll all help make your business become more efficient and profitable.