Paragon Direct Debit Facility

 Swift, Safe & Simple

Your route to more regular payments, less debts and less collection time

These days collections and debts seem to be at the forefront of our clients’ minds and several have asked for assistance with managing a direct debit process.  Mainly as they want to:

  • Increase and regulate cash-flow
  • Reduce debts on the rounds
  • Reduce collection time
  • Increase rounds size – mainly limited by the time taken to manually collect!
  • Increase safety and security

It has also become abundantly clear that, although customers value the convenience of a doorstep delivery, many of them do not appreciate the constraints of waiting in or being back home to pay the milkman, or having ready cash to hand.  In fact it is considered by some a nuisance and why some don’t have a milkman or stop their deliveries.

We need to put the convenience back in to suit the modern customers’ lifestyle!

To that end we have developed a new Direct Debit module which:

  • Interfaces with your direct debit service provider (we recommend First Capital, see below)
  • Stores and manages your customers’ bank details – checking and verifying them easily
  • Automatically collates and submits a file of customers to request payments, on a schedule of monthly dates you specify – other frequencies can also be managed
  • Automatically marks all the customers in that file as paid
  • Automatically emails or prints a statement for your direct debit customers which states how much is to be collected and when.

We can also supply templates for you to contact your customers and promote the process to them, as well as a customised bank details mandate for them to complete and sign.

Direct Debit – How it works

In order to be able to collect your customers money via the direct debit process you either have to be registered with a bank as a direct debit service provider yourself (an expensive and lengthy process for all but the largest businesses), or sign up with an intermediary service provider who act on your behalf and communicate with your customers’ banks. Our preferred partner is First Capital Cashflow.

The process is quite straightforward

  • You get your customers to fill in a Direct Debit Mandate
  • You enter these details into the Paragon Dairy Management System
  • Choose when you want the first payment to be taken and PDMS does the rest.

Direct Debit – How much does it cost

We have researched and developed a software interface with two of the main service providers in the UK; Fast Pay and First Capital Cashflow (FCC).

To add the module to PDMS using one of the above we charge £500. If you are already using a different provider then we can investigate and quote for providing a bespoke interface.

We have negotiated a special rate for our clients with First Capital Cashflow and the costings below are based on their charges.

The initial charge is for set-up, getting you registered with BACS etc. This allows First Capital to collect amounts on your behalf although the name appearing on your customers bank accounts will be yours. This costs £350, payable to First Capital.

Initial set-up costs therefore are a total of £850.

Running costs are based on verifying the new customers bank details and addresses, submitting files to register customers and submitting files to request the amounts due from these customers

  • Verifying a new customer and registering these new customers with BACS via First Capital costs 75p
  • There is a transaction charge of 35p per amount submitted. This is subject to a minimum service fee of £50 per month, so if you submit anything under 143 customers it will still cost you £50.
  • There is no additional charge for submitting the file to collect amounts due.

So, as an example, based on a doorstep round of 500 customers with a 60% conversion rate and adding 50 new customers to the Direct Debit process each month for 6 months, to achieve the 300. After the initial cost of £850 your costs for the year should work out to be £4.23 per year per customer, or just 35p per month each.

Compare that to how much it is costing you at the moment in time, energy, bank charges and fuel?

If your goal is less collection time & more sales we believe we can help you achieve that

So if you would like to do more than just survive in these hard times then please contact Geoff Millard our Sales Director – geoff.millard@dairydata.co.uk

or call the Sales Team on  01204 577776.