Home – New Forums Money matters Credit Application – Automatic Payments?

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  • #987808
    rhinoprops
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    Hi all,

    My name is Steve I am one of the managing directors of Rhino Props. We import and distribute the only two handle acrow prop.

    Currently we have customers asking to create accounts with us, 30 day credit. We do not really want to make accounts, as our sales are processed before we ship our product, but some of the larger companies want it.

    Are we able to charge their credit card each month instead of sending them an invoice and waiting for them to pay it?

    Not sure if this is legal or not, just really don’t want to head down the path of chasing credit.

    Thanks in advance,
    Steve

    #1164420
    Cooke Consulting
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    Hi Steve,

    If you want to go down that path, you’re probably better off getting your clients to sign up for Direct Debits rather than Credit Card.

    Either way, you will still need to send them a tax invoice and allow sufficient time to raise any invoicing queries. e.g. Invoices raised and sent on the 1st of each month with a automatic direct debit date of the 15th of the month. <--Make sure that this is clearly stipulated in your terms of agreement and on your tax invoices. Regardless on what automatic payment method you choose, at some point you are still going to have to “chase” for failed direct debit / credit card payment. So make sure you have a debt management strategy in place so you / your staff know exactly what to do and the process they need to follow at each key stages of the month. All the best.

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