2 min read
Definition
A direct debit is an instruction that lets a business collect payments automatically from a customer's bank account on agreed dates. For the collector it makes income predictable and reduces late payment; for the payer it automates regular bills.
In plain terms
Once a customer sets up a direct debit, you pull the payment on schedule rather than waiting for them to pay — a powerful tool for cash-flow certainty on recurring revenue. It runs on the Bacs cycle.
Why it matters
Collecting by direct debit is one of the most reliable ways to stabilise recurring cash flow. See standing order and Bacs.
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