Category: How Tos

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Surviving Economic Downturns With Subscriptions

An economic crisis is characterised by a fall in economic activity due to a decline in spending, consumption and investment across the economy. In current times, we have witnessed consumers tightening their belts in order to see their way out of this crisis but, with this, we have also seen businesses suffer from a reduction in revenue and cash flow, increasing expenses, poor growth and in the worst cases, business failure.

Here’s how a subscription-based business model could be your antidote to getting your business through this economic downturn.

The SEI (Subscription Economy Index) has found that subscription revenue has grown by more than 350% for the past seven years as recurring revenue-based business models exploded due to digitally enabled, pay-as-you-go services. Subscription services have even shown to be more stable and more resistant to fluctuations in the economy. Customers often prefer to make subscription purchases, which offer greater value for a lower up-front cost, than large one-off payments as these are easier on budgets during times of financial hardship.

Meanwhile, for a business, a subscription model can be preferable for many reasons. Most importantly, it allows for a more predictable cash flow through recurring revenue from existing customers. If your business typically offers one-time sales, it may be beneficial to switch to a subscription model for greater business stability.

Why may a business struggle during economic crises?

A business model that relies on one-off sales is likely to face a myriad of difficulties during economic crises compared to their subscription counterparts. The key difference between the two is that one off sales transfer ownership of the product to the consumer, while subscription businesses do not.

Cash flow is crucial in times of economic downturn, and unfortunately some businesses suffer from unpredictable cash flow. While efforts to forecast revenue may help, small changes in the market can result in drastic changes for businesses. The issue here is usually a lack of an ongoing customer base. Businesses that rely on traditional one-off payments tend to have much less of an ongoing relationship with their customer base and therefore it is not easy to up-sell or cross-sell to existing consumers.

Many businesses also face persuasion challenges. During poor economic conditions, consumers are more cautious with their spending, attempting to convince them to make large one-off payments can prove to be a difficult task. Along with this, even if businesses are able to overcome the persuasion barrier, one of the biggest drawbacks of one-off payments is the lack of customer retention. The Customer Lifetime Value of each customer is limited and there is little guarantee of selling to them again, especially during downturn.

The Magic Pill: A transition to a recurring/subscription model

Subscription-based businesses are on the rise. A recurring billing model, like that offered by Curlec, may enable your business to see steady growth, benefit from higher revenues and increase in scale.


Attractive and more affordable pricing

Perhaps the main advantage of subscription business models arises from the fact that this type of pricing is much more attractive to consumers. Higher prices act as a barrier to entry and reduce customer acquisition, especially during times of economic downturn.


Larger customer base

The lower barrier to entry may also allow your business to capture a larger customer base, who otherwise would not be able to pay large one-off prices for your products. A great benefit is that it is also easier to offer proof of concept. With one-off payment systems, it can be difficult to offer consumers a trial period. As customers gain full access to the product immediately after subscribing, it is much easier for them to assess the value of your product.


Reducing churn through automation with Curlec

With Curlec’s billing automation, not only is revenue and cash flow much more predictable, Curlec’s services mean that there are fewer gaps between billing cycles, helping to plug revenue leaks and expediting receivables. It is important to note however, that with a subscription model, reducing churn is essential. An easy way to ensure minimal churn for your business is to provide a seamless billing and payments collection process.


Easier to up-sell or cross-sell to existing customers

Subscription based models could also increase customer cart sizes through up and cross-selling. A subscription model enables a business to build a deeper relationship with customers as a result of its customer-centric nature. This ongoing customer relationship means that it can be easier to market additional sales to customers. The customer is already aware of the value that your business provides and is likely to be more receptive to any additional services that can increase the value of their subscription further. Additionally, customers already accept the subscription fees and this means that any additional sales may be viewed as more affordable.

If you are a business seeking to make a transition to a subscription based model, or you are already a subscription business seeking to make your payments collection process seamless, learn more about how Curlec can help here. Keen to know more about the subscription economy? Check out this blog post by Curlec.

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How Tos Tips

Managing Cash Flow In A Crisis

In times like these, cash is king. The coronavirus pandemic has taken the world by surprise and the main priority of many businesses, large corporations and SMEs alike, has shifted to cash flow optimisation and survival. According to the World Bank, Malaysia’s economy is likely to contract by 3.1 percent in 2020 – a scary statistic for many business owners. This, paired with JP Morgan’s findings that half of small businesses only have a cash buffer to allow them to stay in business for 27 days, necessitates a focus on cash flow for many businesses.

Here’s what Curlec has to say about effectively managing your business’s cash flow.

Wait… What is Cash Flow?

Cash flow is a measure of the amount of money that flows into and out of your business over a given period of time. A business can be cash flow positive, which means that more money is flowing into the business than out of the business, or cash flow negative, which means that more money flows out of the business than into it.

Operating, financing and investing activities cause changes in the cash flow of a business.

Why does it matter?

Managing and optimising your business’s cash flow effectively is essential in ensuring business survival, especially in times of financial hardship brought by the COVID-19 pandemic.

A wise (wo)man once said ‘cash is king’ and at Curlec, we second this view. This is why Curlec recommends Direct Debit to optimise your business’s cash flow.

Cash flow is essential for daily operations, paying bills and to cover day-to-day costs. Cash flow also gives you business greater flexibility – be it with purchasing decisions, debt management and credit acquisition. Moreover, in order to grow your business, you’ll need to reinvest and in order to reinvest, you’ll need cash.

Managing your business’s cash flow means that you know when money will be flowing into your business and optimising it means trying to get more money to flow into your business at a quicker rate.

The goal is to always be cash flow positive. Learn how Curlec can help with this here.

Tips on how to manage your cash flow…

First up, don’t panic! We know it can be stressful trying to keep your business afloat during these uncertain times but panicking isn’t going to help. Try talking to key stake-holders in your business and be transparent about the issues that you’re facing. Those who know your business well may be able to help you think of ways to increase the rate of money flowing into your business. Think outside of the box! We’re currently facing a global pandemic and nearly all of us are facing economic conditions that we’ve never faced before. You may need to be creative with your ideas in a situation like this.

Here are some short-term and long-term ideas to get you started.


Short-Term Solutions:

Monitor Your Accounts Receivable

Accounts receivable is simply any money owed to your business from your customers. The goal here is to expedite your receivables. The first step is to solidify the basics: timely and accurate invoicing and switching to electronic invoicing could be a more efficient option. Another option to consider is shortening payment terms, thereby allowing you to expedite your receivables in critical times like this. Your business’s payment terms and payment collections process is crucial in ensuring a stable and healthy cash flow. When you have more time, think about whether your payment process supports cash flow optimisation.

Read more about Curlec and how we can help with this here.


Extend Payables

This refers to the money flowing out of your business. Think about ways to reduce the amount of money flowing out of your business by delaying payments. We recommend caution when doing so. Be transparent with suppliers and communicate with them in order to preserve your supply chains.


Reassess Variable Costs

A simple way to do this is to reduce discretionary expenditure. Consider reducing full-time work to part-time work, if possible, in order to reduce labour costs or consider operating a work from home program, if you don’t already have one, to reduce commuting costs and potential rent expenditures. Some solutions could also be as simple as providing fewer snacks in your office pantry!


Long-Term solutions:

Select A Payment Method That Provides Long Term Cash Flow Stability

Cash flow stability means that you’re confident that more money is constantly flowing into your business than out of your business. Curlec is here to help you manage your business’s cash flow with Direct Debit. Automating your payments with Curlec means that you know exactly when you’ll be getting money from your customers and ensures that these payments are always made on time. If your current payment method doesn’t support cash flow stability, consider making a switch.

Request a demo from Curlec here.


Reassess Fixed Costs
In uncertain times like these, a good option is to consider converting fixed costs to variable costs where possible. Think about leasing large fixed assets instead of purchasing them and reassess your business’s investment plans. It’s probably not the best idea to be making risky investments right now and doing so could destabilise your business’s cash flow even more.

The COVID-19 pandemic has brought to light the importance of a steady and healthy cash flow for all businesses. Cash flow optimisation is not always an easy task, especially when operating a business model with a heavy reliance on recurring payments.

Curlec is here to make your payments collection process seamless with Direct Debit. Get in touch with us to find out more about how your business can automise its payments collection process.

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Digital Payments: A ‘Nice-to-Have’ To The Only Way To Do Business

Covid-19 has sent the world into a panic. This is particularly true for businesses, with companies of all sizes being sent into survival mode. If cash flow wasn’t the priority before, it certainly is now.

A survey conducted by SME Malaysia found that only 33% of Malaysian businesses had just enough cash flow to pull through in March, while another 37.8% can sustain themselves until April 2020.

The fallout from this pandemic for businesses is clear for all to see. Initiatives such as going digital, which we previously viewed as “nice to have” pre Covid-19, have quickly accelerated overnight to becoming the only way to do business. This is particularly true when taken against a payments perspective – when there is no cash, no cheques, no over-the-counter transactions, then digital payments are a must.

Here at Curlec, we provide an online platform that helps businesses collect recurring and one-off payments, and ultimately puts them in control of their cash flow. In this article, we will explore how solutions such as ours can help mitigate the short term impacts that we all currently face right now, as well as what can be done longer term to weather the next potential storm.

Make it as easy as possible for your customers to pay

In the midst of the global pandemic, it is more important than ever for businesses to offer convenience and flexibility to their customers. The last thing you need is having your remaining prospects cancel their purchase or subscription due to restricted payment options, especially when sales are at a premium.

Relevance remains the key currency for business owners to scale up their operations effectively, and there has never been a more important time for businesses to become truly digital. To address this issue, Curlec enables business owners such as yourselves to not only manage your payments digitally and remotely, but ultimately the power to design your own payment plan to dictate when to bill, how much to invoice as well as when to collect.

Being truly digital means having to be closely attuned to how your customer wants to pay, or in the case in a lockdown, how they can pay. So, when making payments by cheques or over the counter is out of the question, have your customers complete their transactions directly through your website using Curlec’s API, or utilise our Request-To-Pay feature via email or WhatsApp. Here payment links with pre-filled forms can be sent to your customer, where they can simply authorise within a few clicks.

When payment becomes real-time and instant, all the customers need to do is authorise forms online or approve requested payments in real-time, without even making a trip to the store. This means that you can get paid instantly!

Have full visibility over your payments process

While some perceive going digital as just a requirement to engage with new customers, being digital actually requires you to be open to re-examining your entire way of doing business and understanding where the new frontiers of value are.

The Curlec system easily integrates with accounting systems, meaning that collecting payments become automatic when invoices are due, and reconcile these payments automatically so that you will be able to know what has been collected as well as how many payments that are due or outstanding. Having all this information at hand meant that you can easily manage your projections, as well as having the ability to act on certain issues quicker to avoid any disruptions to your cash flow.

In addition to that, one of the major benefits of going digital with Curlec is its mobility. The cloud enables you and your team to have a consolidated view of all your payment records in real-time, while offering the flexibility to work from any location remotely. Aside from improving the level of productivity and efficiency, this saves you having to deal with stacks of invoices and worrying about payment notices getting lost. You can spend less time worrying about who has yet to pay you and focus more on growing your business.

Widen your collection strategies

Collecting funds, especially recurring payments should be easy. And for most businesses, using Direct Debit puts you in control of when you get paid.

But what happens if the collections fail? Every failed transaction will negatively impact your cash flow, increase churn rates as well as require heavy admin work to be rectified.

So, how does one expand and diversify their debtor strategy when this happens?

With the Curlec portal, you get instant notifications of any failed transactions as well as the ability to automate retries to improve your collection rates accordingly. The system provides a variety of automatic notifications which includes mandate set up, transaction status and failures that encompasses the entire collection process so that you are notified and are able to rectify any related issues instantly. Having full visibility of your collection status using the Curlec portal means you can act on this a lot quicker and strategically.

And if the retries for Direct Debit still don’t work, you don’t need to worry. Curlec gives you the ability to combine your regular collections with our one-off Instant Pay (FPX) tool. As a result, your customers can pay off what is owed for a one-off period while you sort out the recurring issue. So, whether you collect monthly subscriptions, instalments or one-off transactions, collecting payments with Curlec has never been easier.

In a time where cashless methods are the safest and most practical way to conduct your business, it is now mission critical to be able to make the change quickly and become truly digital. So while you work on what needs to be done to sustain and grow your business, Curlec will be right behind you to handle all of your collection needs.


To find out more on how Curlec can help you collect payments remotely, connect with us today by filling in the contact form below.

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5 Excuses For Late Payments & How To Deal With Them

It probably does not come as a surprise that late payments are not just a problem for SMEs and large corporates in Malaysia, but also for businesses of all shapes and sizes across the globe.

Dealing with late payments has become part and parcel in running a business. Reports suggest an estimated $3.1 trillion are currently stuck in account receivable for U.S businesses alone, writing off around $150 billion every year in bad debt from receivables that could not be recovered.

The decades old practice of late payments has proven to cause difficulties for businesses who have their own overhead and staff to pay, hence, suffer from numerous admin and cash flow issues in trying to stay afloat.

A study by SME Media Group and INTI International University reports 73% of Malaysian businesses suffer from late payments, getting paid on an average of 94 days for invoices with 30-day payment terms.

While recovering from late payments can be a hefty challenge, the most important thing to remember is that you have delivered your end of the bargain, and you have every right to seek for payment. Preparation is key in getting past the excuses provided by both vendors and customers, and taking a proactive stance when speaking with them will help you overcome these challenges.

In this article, we highlight 5 different excuses that customers and clients have commonly used when it comes to late payments, and the fixes you can utilise to ensure that you get paid on time while maintaining a good relationship with the said customer.

Excuse #1: “We have yet to receive your invoice”

Lost invoices happen to be one of the most common delaying tactics used by clients and customers. Whatever your product or services may be, ensure that you keep a paper trail on all your communication with your customers that will prove useful when you take necessary actions to recover these payments.

Here are two ways in which you can do to address this;

i) Request for email acknowledgement upon receipt of your invoice.
ii) Send email reminders before payment is due to ensure that the invoice has been received and any issues they have are answered prior to the due date.

Excuse #2: “The person in charge is not in today”

In any industry sector, the business should still operate as usual even in the absence of the person who issues the company’s payments. However, this excuse has been constantly used as a way to put off payments whenever the collectors come calling.

First of all, ask for the exact person you would need to get in touch with and when they will be available. Remember to make a note on their availability and call back then.

Alternatively, if that doesn’t seem to work out, ask for another person from the team to assist. Today’s technology has made it possible for clients to store proof of delivery, invoices as well as other types of important documents that would be useful to the rest of the team when the person in charge is not available for long periods of time.

Perhaps, to speed up the process, you can offer an alternative payment method and remind them of the possible interest charges should the payment be further delayed to prompt their immediate action.

 

Excuse #3: “We are waiting for payments ourselves”

In some cases, clients feel that they are entitled to withhold payment until their customers make payment to them.

While you may be willing to forgive the occasional delay, you might want to review your payment plan outlined in the contract with your client or customer, and reiterate the terms they have agreed upon in the beginning of the partnership.

Give them a new deadline and advise that any future services will probably require a deposit ahead of time or at the very least, a part payment or payments in the form of instalments to ensure that you receive some sort of compensation to cover your business needs.

Excuse #4: “There is a problem with the work”

Possibly the oldest excuse in the book, it is common for clients to withhold payment on the grounds that the work is wrong, or it was never signed off. And disputes regarding the work deliverables are often left unattended for as long as possible to cause delays in resolution, in turn, the need for payment as well.

From minor discrepancies to deliverable conflicts, the key here is, the more details you ask, the harder it is to get it wrong. The best thing you can do is to call before the invoice is due so that any feedback with the work is jotted down and gets resolved by the time payment is scheduled to be transmitted.

 

Excuse #5: “Our system is down”

While struggles with technology are understandable, they are also usually temporary. And blaming payment delays on technology is another way to try and excuse the fact that they are not able to pay you for your services on time.

The best thing to do is to ask when they can expect the issue to be resolved, and if arrangements can be made to send the payment using other methods rather than waiting by the computer.

With resources such as mobile banking and other various methods of payment available, there is no real technical excuse for not being able to provide payment by the time it is due.

 

Curlec: A Smarter Way to Collect Recurring Payments.

In an industry where chasing payments is commonplace, let outstanding invoices be a thing of the past. Curlec creates a seamless payment experience that enables you to get paid on time, every time via Direct Debit and Instant Pay (FPX).

Improve your cash flow – While traditional payment collections result in never-ending recurring late payments, Direct Debit automatically pulls fees from customer’s accounts whenever it’s due.

Automate Your Payments – As your customer base grows, collecting payments only becomes more and more of a hassle. Provide your customers the option of a more convenient, worry-free way of making payments and stay one step ahead in terms of convenience and flexibility.

Minimise employee workload – Direct Debit’s hands-off approach to recurring payment collections take the burden off your employee’s shoulders. The need for follow-ups are reduced and employees can then turn their focus elsewhere.


Want to talk to us about swapping your current payment solution provider to Curlec? Contact us below and we will get in touch soon!

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The Ultimate Checklist To Get You Started With Curlec

For some, setting up your payment system can be as easy as popping a checkout button on your site and calling it a day.

For smart business owners, however, taking full control of the entire payment process is definitely the way to go to not only ensure that they provide a seamless payment process for their customers, but also a smarter solution that can help improve their cash flow significantly.

So, if you are a business owner who has just signed up to Curlec, but are not sure where or how to begin, we have come up with the ultimate checklist to get you started with Curlec’s Direct Debit solution in just 3 easy steps.

Deciding On Your Billing Process

Whether you are selling subscription packages or one-off products, the best way to get things rolling is to choose the simplest way possible to process your payments. A method that not only simplifies your workflow, but also provides a straightforward process for customers to complete the payment value chain.

Here are 3 things you will need to consider when structuring your billing tactics:


Sign Up Method – May it be in-store or online, establishing your onboarding method determines where and how your customers sign up. With our web-based application, your customers can make purchases in-store at the point of sale, or have them sign up directly through your website using Curlec’s powerful API. Our system provides an easy solution for customers to authorise their eMandates from wherever they are.

Billing Cycle – Unlike any other payment methods, Direct Debit works great for businesses that charge varying amounts depending on how much a customer uses or buys. You have the ability to customise the amount, date, frequency and duration of payments according to your business model. This means that whether you bill your customers just once a month or everyday of the month, we provide the flexibility to do this!

Dealing with Failed Transactions – Concerned with failed payments? With the Curlec dashboard, you can now get real-time notifications of failed transactions as well as being able to automate collection retries. Additionally, we offer additional payments options such as our Instant Pay (FPX) feature to improve your collection rates.

Determining Your Roll Out Plan

It turns out, timing really is important. But that’s not the only thing that gets your payments going. Even the best possible payment solution can quickly turn disastrous if no proper adoption process is being implemented.

Here are a couple of things you will need to make clear when designing your roll out plan:


Notifying your clients – Identifying key communication strategies to go along with the launch of Curlec will ensure you maximise your adoption rates from the very beginning. The best possible way to do this is to launch your system in phases and communicate this to your clients throughout. Start with the group of people you know are most likely to adopt and succeed, before venturing with the groups who are less open to change.

Getting your team aligned – Most of the time, the difference between a successful and failed adoption is having a great team that works well together for implementation. Always remember that communication works both ways. Make the team feel they are part of the decision making process by giving them a chance to provide feedback and concerns regarding the new system.

There’s more to prepping the team than just having a single training session.

  • Announce the changes in advance, preferably weeks or months before to get them ready.
  • Take advantage of the resources provided by hosting ongoing training sessions to keep the teams engaged and familiarise themselves with the system.
  • Evaluate your roll out success at different intervals as you go forward by consistently following up with the team to ensure everyone is onboard with the process.
Encourage Your Customers To Use Direct Debit

With Curlec, Direct Debit doesn’t just benefit your business, it also brings a whole host of advantages to your customers too. Advantages that ultimately, add to the quality of services that you are delivering.

Mention your payment options from the start – Talk openly about your payment methods to set clear expectations that Direct Debit is the preferred payment channel.

Explain how easy it is to sign up with Curlec – Show customers how easy it is to set up their payment with Curlec. By highlighting key benefits of using Direct Debit to customers, you are offering them peace of mind that builds an element of trust for your business.

Incentivise the switch – The truth is using Direct Debit brings a whole host of cost, time and admin savings to your business. You may pass on some of these savings to your customers and encourage them to start using Direct Debit ASAP. This can be:

  • Discounted monthly fees
  • Waiving any upfront fees
  • A gift for those paying by Direct Debit!

If you haven’t checked out our previous article on how you can further encourage customers to move to Direct Debit, you can brush up on your knowledge here.


Eager to get started on your very own Direct Debit solution with Curlec? Get in touch with us today by filling up the form below, and we’ll help you boost your business with the right roll out plan!

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Whatsapp Your Recurring Payments! Our New Update Tells All

Your customers are busy people. If your business involves recurring payments, you’re probably familiar with this scenario:

An interested prospect responds to your advertisement or gets in touch with your company. From there on, the drill is pretty much the usual – contact them through the phone, follow up further through Whatsapp and ultimately (hopefully!) close the deal.

But then the prospect hits you with one of these:

 

“Oh, I’m currently overseas for work! I’ll only be back in a month.”

“My schedule has been so packed recently. I’ll let you know when I’ve got the time to pop by and sign up.”


Sounds familiar? If you’ve ever been on the frontline of sales, most likely so. In situations like these, no amount of persuasiveness or irresistible promotional strategy can help secure that sale, simply because the prospect can’t sign up even if they wanted to.

 

What We’re Doing To Combat This

To directly address this issue, Curlec’s latest software addition gives merchants the ability to send eMandates directly over the phone through Whatsapp!

Customer representatives or sales personnel can now message the eMandate form over to the customer, and the customer can sign up without even having to make a trip to the company’s physical store. The process takes less than 5 minutes for the customer, and is done on a purely remote basis.

What’s an eMandate?

For companies with recurring billing payment models, the challenge of late payments and delayed cash flow is all too commonplace. These issues pull companies towards the direction of Direct Debit for its ability to automatically collect payments on a recurring basis. But don’t worry if you’re still new to the world of Direct Debit, brush up on your basic knowledge here!

The eMandate is essentially the digital “registration form”. Customers fill it up to grant permission for the merchant to deduct payments from their bank account via Direct Debit. With Curlec, the eMandate could previously be sent through email – and now through Whatsapp as well!

But why not just use email, then?

The channel you use to sign customers up is more important than you think. It affects your close rate, user experience, and even the relationships between you and your customers.

The response rate for email vs Whatsapp is self-explanatory. Which do you respond to faster, email or Whatsapp? There’s your answer.

When it comes to lead response rates, emails may fare better for B2B approaches. But try sending the average Joe an email follow-up response and you can expect to never hear from him again.

Even if all the necessary convincing has been done, and the only step left is for the prospect to sign up via the eMandate, Whatsapp is a clear method of ensuring the prospect feels more pressured to complete the process, and to complete it ASAP.

 
There’s more than one reason why you should be using Whatsapp to close sales.

Consumer Convenience

The checkout stage is where a prospect turns into a customer. When you pay for your groceries at the checkout, you want it done in a jiffy. The same goes for Direct Debit. In this scenario however, the checkout point is the registration of the eMandate.

By being able to send the eMandate over to the prospect wherever they may be, the prospect enjoys a frictionless “checkout” process where all they have to do is open up their Whatsapp to access the form. Considering that Malaysians were the world’s largest Whatsapp users, that’s a pretty comforting fact.

With our new update, there’s no piles of paper involved, no trips to the bank. Not even the need to open up an inbox.


Competitive Customer Service

According to the director of CEB Matt Dixon, more than 50% of customer loyalty is based on the overall sales experience.

Whatsapp enables for more personal, customized customer interaction. Automated website redirecting and emails can hardly compare to the effect of chatting with a prospect via a messaging app they’re already using every single day.

Sales personnel can naturally answer customer enquiries more pleasantly too. Any bumps the prospect may face or queries they may have while filling up the eMandate can be immediately addressed – all they have to do is text.

This helps the prospect (and soon to be customer!) feel as if the sales rep is always there to help them, effectively instilling more trust and customer loyalty in the company.

 

Smoother Cash Flow

Perhaps most importantly? Sending the eMandate through Whatsapp pretty much guarantees a faster submission.

By sending it through email, there isn’t much sense of urgency for the prospect. It may linger in their inbox, perhaps until it completely slips their mind. And by the time your sales rep follows up with them, they’ve probably already changed their mind and decided they’re better off not doing business with you.

The follow up process becomes more efficient as well. Sending a quick “just checking in” reminder can be done more often and is seen as less intrusive and unwelcome as compared to following up via email or over the phone.

Direct Debit at its core is all about putting the company in control of their cash flow. Paired with the benefits of using Whatsapp, its ability to improve cash flow is only enhanced.

 

Have a go at our new feature for yourself!

You want things done instantly, and so do your customers! Our latest software feature enables you to do all that. After all, Whatsapp is an instant messaging app.

Connect with us using this form here to find out how Direct Debit can help your business become a more profitable one.

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How To Encourage Your Customers To Use Direct Debit?

You want to start using Direct Debit as your primary payment option for your customers due to the benefits that it brings to your business. From automation and flexibility, to low costs and low failure rates, maximising your company’s Direct Debit uptake is key to realising its full impact.

So, how can you encourage more of your customers to pay via Direct Debit?

This is a question that we have been asked by a number of our clients and at Curlec we are strong believers that Direct Debit doesn’t benefit just your business, but it brings a whole host of advantages to your customers too. Advantages that ultimately, add to the quality of services that you are delivering.

Below are some methods that you can use to increase Direct Debit uptake amongst your customers.

1. Offer Incentives

Who doesn’t love an incentive or a discount? The truth is using Direct Debit brings a whole host of cost, time and admin savings to your business. These savings can be passed on to your customers to encourage them to start paying by Direct Debit. Here are examples of how some of our clients have used incentives:

  • Discounted monthly fees
  • Waiving of upfront fees
  • A gift for those paying by Direct Debit!
2. Explain to Customers the Benefits

Direct Debit doesn’t just benefit you as a business but it also makes the lives of your customers much easier. Regular bill payments become automatic and customers no longer have to worry about services being suspended due to non-payment.

There are a number of benefits that can be easily articulated to your customers. For example, Direct Debit only requires a one-time sign up and following this they don’t have to worry about triggering the payment again, saving them time and hassle in the future. Explaining the benefits using other relatable behaviours is also a useful tactic, such as the example of the difference in ease between paying your phone bills via a postpaid plan versus a prepaid one.


3. Offer Peace of Mind

We understand that some customers may have concerns over paying by Direct Debit due to businesses being put in control of when they get paid. However, be sure to highlight that customers are also empowered in this two-way relationship.

When your customer signs up for their first Direct Debit with a Curlec merchant they get created with a free account on our system. It is here where customers can monitor all their payment transactions in real time. On top of this, your customer retains control over when to terminate or amend their Direct Debit mandates (subject to any other commercial agreements with you) and this can be easily done within the Curlec portal.



4. Make Direct Debit your Preferred Payment Option

If you want to influence your customer’s payment choices you could explicitly state that paying via Direct Debit is your preferred payment option. In some cases, we’ve had clients who have removed other payments options altogether or introduced barriers to nudge customers to pay by Direct Debit.

In an online setting you could make Direct Debit the first option on your website’s payment page. This would indicate that this is your preferred payment option and get the attention of your customer.


5. Be Honest

There is truth to the saying ‘honesty is the best policy’. In some cases, it helps to be honest with your customer by explaining to them how Direct Debit will help your business due to the reduced admin and cost savings you will make.

This tactic is particularly useful for smaller businesses with a close relationship to their customers, like a boutique gym or social club.

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How Tos

How To Get Your Business Paid On Time

Have you ever had to chase customers for late payment? You’re not alone – the average bad debt per company in Malaysia stands at a staggering RM52,100 per annum, whilst it takes an average of 94.1 days for businesses to get paid.

Late payments clearly put a significant amount of strain on your business’ cash flow and removes the ability for you to plan for the future. Chasing overdue invoices also requires plenty of time and resources, which ultimately impacts your bottom line. It is because of problems like these that Curlec has developed a solution using Direct Debit that will ensure your business gets paid on time.

Make Payments Easier

So how can you ensure that you get paid on time? The answer is simple – make it as easy as possible for your customers to pay you. Here are 3 things that you can do to ensure this:

      1. Set up a simpler way to collect payments – Move away from methods that require a lot of admin work for you and your customer, such as cash or cheques. Using online payment gateways requires such as Curlec requires much less effort for your customer. This means that you can get paid quicker.
      2. Collect on a monthly basis – Collecting on a regular monthly basis means that your customers can spread their costs out evenly, rather than having to front up the money for quarterly or lump sum payments.
      3. Use online accounting software – Invoices and statements can be automatically generated and sent out via email. This saves you having to deal with stacks of papers and worrying about things getting lost in the post.

 

How Curlec Is A Smarter Way To Collect Payments

At Curlec, we understand the difficulties that businesses face when collecting payments and the impact of unpaid invoices. That is why we have created a simple and cost-effective solution that enables you to take Direct Debit payments online.

    • Gain control of when you get paid – Direct Debit puts you in control of when you get paid as your customers authorise you to collect payments when they are due. This means no more late payments.
    • Instant set up for customers – Customers can set up their Direct Debit with you within minutes and their bank details are filled in securely. Once this is done, payments become a seamless process.
    • Automate payment collection – Curlec can integrate with your accounting software so you can automatically set up payments alongside your invoicing.

Get Paid On Time, Every Time

With Curlec taking care of your payments, we remove the stress of managing you cash flow and unpaid invoices. You no longer need to keep chasing your customers for late payment and can have peace of mind that there will always be money in the bank.

Focus on growing your business and stop worrying about getting paid on time. You can leave that to us.

If you would like to find out more, please fill in the contact form below this page.