I was just reading First Tab's post about DD Vs SO.
I must admit I do not know anything about how to set up DDs.
I would be grateful if some body could kindly explain the practical procedures involved in setting monthly/quarterly/Annual Direct Debit facility.
Thanks
Replies (6)
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Drect Debits
You need to speak to your Bank, there are a huge array of hoops that you need to jump through, even assuming they deem you big enough to use DD. I was involved in setting them up in a previous role and the book of rules and regulations that we got from Lloyds TSB was about an inch thick...
Alternatively, I do believe that there are companies that offer a direct debit collection service but obviously, there is a fee involved.
John
Setting up a D/D
You'll find most banks wont want to know the average small practice.
You'll need to look at getting a company to provide the service for you.
In the past I've looked at FastPay Limited and Smart debit.
Easy DDs
Go through a provider - call Chris Barnes of CMS who are part of London and Zurich on 07976 598703.
I think there is a one-off set-up of £350 and then £2.50 for each client and a processing fee (which I think is circa 2%) with a minimum payment of £25pm.
Bob Harper
Fastpay
I use (and can recommend) Fastpay. It costs about £400 to set up, and after that, I pay 50p per collection, and £5 per submission (unlimited entries). £2.50 one-off setup charge each payee. No minimum monthly charge
This is far better than the 2% or so that London and Zurich charge, particularly for us accountants who can take direct debits for several thousands of pounds at a shot.
So if I take from 100 clients on one monthly date for invoices totaling say £30,000, it costs me £55. Well worth it considering I don't need to chase clients. I get them to sign a direct debit mandate even before we have agreed a price, and they seem happy! If I was paying 2% it would cost me £600.
Direct Debit Facilities Management
Hi Guys,
I'm sure you'll all be delighted to know that setting up a Direct Debit facility via a method known as Direct Debit Facilities Management is as easy as 1-2-3.
FastPay can achieve this for you in well under 48 hours, following which you will have a DD Mandate branded to your own company name and your company name will also appear alongside your collections on your customers' bank statements.
The cost of setup is negligable and Direct Debits can be collected for a fixed fee which goes as low as 35p per collection.
They're a great bunch and very helpful too. Just take a look at www.fastpayltd.co.uk for further information.
I hope this helps.