Difference between standing order and direct debt

direct debt, financial informationThe terms direct debt and standing order are much in use now days in the business environment. For those who have a bank account, standing order is a very simple option. However some businesses find this payment method to be unsuitable according to their requirements. Both these methods provide the account holder with an opportunity to set a specified amount that will be taken from their account regularly providing a very simple solution for paying off their bills.

However with standing order you can’t change the existence method of payment without undergoing a lot of documentation and administrative work. Any unpaid standing order may take a sufficiently large amount of time before getting the confirmation from the bank. This leads to problems regarding the cash flow of the business.
However with direct debit method you can need the payment methodology quite often without undergoing cumbersome paperwork. You can also offer your clients flexible payment terms.

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