SBGA Irvine on How Recurring Billing Works
Small businesses that require monthly billing to deliver their products and services to customers require a lot of back office administration work to get bills sent out to their entire client base. A small business owners’ goal should be business growth, not stuffing envelopes with invoices. To get more time out of the back office and back in the business, many small business owners have started using recurring billing to deal with the invoice and retrieval of their monthly billing cycles.
Recurring billing requires a customer and a business owner to establish an agreement for payment. The customer provides the financial information necessary for regular withdrawals, usually on a monthly or bi-weekly basis, from a payment type of their choosing. The amount of money to be taken out at each billing is agreed upon, and the day is set for each withdrawal to occur. When the withdrawal day arrives, the money is automatically taken from the customer’s accounts and deposited in the business account.
The benefit for both parties is substantial: the customer no longer has to worry about paying their monthly bill on time, and the business is guaranteed to receive funding on a regular basis.
