Your Collection Rate tells you how successful you have been in collecting on your customers´ invoices. A positive collection rate indicates that the money owed to you is being paid on time. Whereas a poor collection rate can signal that your customers might not be the most reliable payers and other measures can be implemented to increase your Collection Rate.
Ezypay provides you with a variety of ways to help collect on the invoices from your customers more effectively, thereby helping you improve your Collection Rate. Here are a few ways you can get started:
1. Providing payment options for your customers
These days, customers have an array of choice when it comes to how they pay and the different benefits that come with these methods. From credit cards that deliver points, to simple bank debits free of interest charges, your customers will have a preferred method of payment. To make sure customers can pay you in the method of their choice, it’s best to offer the variety they need. Ezypay accepts credit card (including Amex), debit card and direct debit as payment methods, with some variations in availability across each of the regions we operate in.
Ezypay also offers your customers repayment options should a payment fail. Your customers receive prompt failed payment notifications and an easy way to make good on their failed payments through our online Pay Me Today portal. At the same time, they can update their payment details to avoid a failed payment in the future.
2. Making use of flexible payment plans
Aside from a regular recurring payment, flexible payment plans can offer payment options that include a different first payment to the recurring payment value; a joining fee for instance, as well as once off payments. They can also allow you the flexibility to easily change the billing frequency and debit value or pause a payment plan for a set period.
Allowing your customers flexibility in how often and when they pay you ensures they can afford to make the initial purchase and can continue to pay for your product or service.
3. Enabling account features that improve collections
Choosing the right way to set up your Ezypay account to manage failed payments will be individual to your business. Pre-debit SMS notifications is one method that can significantly reduce failed payments, and in turn, increase cash flow by alerting your customers in advance that a transaction will be processed. With notice, your customers can check their accounts to ensure they have the funds available to avoid a failed payment. It’s timely communication that is advantageous for both parties.
Further, enabling automatic rebilling to retry on failed transactions can remove the need for debt collection processes and take the pressure off your customer relationships.
In both the short and long term, failed payments can have a big impact on your Collection Rates and business revenue. Saving time chasing payments will give you time to focus on growing your business. Automated reminders and notifications have proven to positively impact Collection Rates, ensuring that the money you have worked so hard to earn lands into your bank account on time.