Paying your regular business costs, such as your electricity, buildings insurance etc. by Direct Debit will help reduce the workload in your finance department. Changing to Direct Debit only takes four simple steps.
Step 1 - Contact the organisation you wish to pay
In order to set up a Direct Debit first contact the organisation you wish to pay. They will ask you to complete a Direct Debit Instruction. This may be posted to you, or alternatively, some organisations can set up Direct Debit Instructions over the telephone or via the internet.
Step 2 - Complete the Direct Debit Instruction
You will need the following information to complete your Direct Debit Instruction:
- The name of your company/organisation
- Name and address of your bank or building society
- Authorised signatory(s) on the account
- Your bank or building society account number
- The branch sort code (see your cheque book).
Ensure that all the details given are correct and (in the case of paper Instructions) return it to the organisation. The organisation will update their payment records and forward the Instruction onto your bank or building society. The Instruction, to your bank or building society, gives the organisation authority to collect varying agreed amounts from your bank account on dates agreed with you.
Step 3 - Check the advance notice detail
The organisation will give you advance notice of collection dates and amounts, whether you set up a Direct Debit by the telephone, internet or completing a paper Instruction. Check these details are correct. Should you wish to query any of the details contact the organisation straight away.
Step 4 - Relax
Other than making sure you have sufficient funds in your account when the payment is due there is nothing further for you to do. However, it is a good idea to check your bank statement regularly to ensure that all your Direct Debits are going out as agreed.