Malaysia is no stranger to Direct Debit, as this payment service has been available since 2010. However, up until now, it has remained an extremely underutilised system due to the high costs and administrative burden associated with running the previous paper-based process. This has resulted in Direct Debit solutions being exclusively reserved for large organisations that have the resources and capabilities to facilitate it.
SMEs have thus been overlooked by traditional financial institutions as they do not have the volumes or internal processes to handle Direct Debit payments. This has resulted in a large void for SMEs due to the lack of suitable alternatives available to them, particularly for recurring payments. This is emphasised by the fact that the average bad debt per company in Malaysia stands at a staggering RM52,100 with an average 94.1 day credit period, as discussed in our previous post.
It is clear that SMEs have been underserved nationwide and payment collection continues to be a big problem. At Curlec, we are changing this and providing a Direct Debit solution to businesses of all sizes. Here are 5 ways that we are helping Malaysian SMEs:
1) Improve Cash Flow
Direct Debit puts you in control as it lets you collect payments whenever they’re due. This means that you can spend less time chasing payments and increase the volume of cash your business has on hand at any given time.
2) Reduce Costs
With Curlec, you can avoid costly credit and debit card transactions. This is because Direct Debit payments are routed outside of card networks such as Visa and Mastercard, making it considerably cheaper for you.
3) Focus On Your Business
Once authorised, you can take payments from customer accounts with no further action needed from them. This lifts a huge administrative burden as payments become automatic, leaving you time to focus on growing your business.
4) Increase Customer Retention
Curlec is a great way to encourage customer retention and attract recurring revenue. This is because Direct Debit creates a simple payment method that can easily be renewed and maintained over long periods of time.
5) Better Accounting
Curlec easily integrates with accounting systems, meaning that collecting payments become automatic when invoices are due. Once you’ve received a payment, Curlec will mark the invoice as being paid allowing for automatic account reconciliation.
We understand that cash flow and managing money is the lifeblood of SMEs. With Curlec taking care of your payments, you take a huge amount of the hassle out of handling these processes. You no longer need to waste precious time chasing customers for late payment and can instead get back to focusing on growing your business with the peace of mind that there will always be money in the bank, all year round.
If you are interested in finding out more about Curlec please reach out to us here by filling in the contact form below this page.