Direct Debit Solutions for Small Businesses
Outsourcing to an Approved Bureau or managing a BACS system in-house
If you're looking for the perfect way of collecting money in your business, it's worth considering the option to outsource your direct debit collection process. As a small business it's very difficult, time-consuming and expensive to get Bank sponsorship so that you can take direct debits yourself.
The simplest option for a small business or SME is to use a payment service provider like Eazy Collect which is a BACS approved bureau and have everything you need to start accepting direct debits within just a few days.
The solution will:
- Save you money
- Keep your data and your customers' data highly secure
- Be BACS compliant at all times
The table below is a typical cost comparison analysis using conservative in-house costs. The figures are based on 1200 customers and the minimum cost savings are £10,000 in Year 1 and over £3,000 for each subsequent year.
I'm interested in a bespoke quotation
For a more detailed typical scenario analysis to help you define the costs and benefits for your organisation, download the document below:
Case Study PDF
| In-House Solution - BACSTEL IP software supplier | Unit Cost (£) |
Units or Months |
Year 1 Cost (£) |
Year 2 Cost (£) |
| DD Software Core Package | |
|
|
|
| Bacstel-IP, 500 Payer database, 1 PC licence, | |
|
|
|
| 1 SUN, 2 x Smartcards and card readers | 3240 | 1 | 3240 | |
| Add 1 extra PC licence | 520 | 1 | 520 | |
| Add custom letter templates | 500 | 2 | 1000 | |
| Add Payer database (£500 per extra 500) | 500 | 2 |
1000 | |
| Annual Support licence @ 20% x £5520 |
|
|
|
1104 |
| Product Installation | 1050 | 1 | 1050 | |
| Product Training | 1050 | 1 | 1050 | |
| Staff Wage Allocation | |
|
|
|
| Assume 1 high level staff and 1 admin level at 25% | |
|
|
|
| dedicated time allowance £40K annual (12.5% of time) |
5000 | 1 | 5000 | 5000 |
| BACS Staff Training | 250 | 2 | 500 | |
| BACS and Bank Charges | |
|
|
|
|
Standard rates 8p per transaction & £5.00 per BACS submission |
136 | 12 | 1632 | 1632 |
| |
|
|
|
|
| IT Systems and Infrastructure | |
|
|
|
| Server, firewall, configuration, access controlAssume only minimum upgrade requirements |
500 |
1 |
500 |
|
| |
||||
| System Support and Maintenance at £50 per month | 50 | 12 | 600 | 600 |
| DR & Contingency at £30 per month | 30 | 12 | 360 | 360 |
| Postage and Stationery | |
|
|
|
| All DD-related letters and miscellaneous correspondence | |
|
|
|
| assume 1200 x 75p + 25% customer change in Yr 2 | |
|
1350 | 450 |
|
TOTAL In-House Solution Costs NB |
|
|
17,802 |
9,146 |
| Eazy Collect Bureau Solution |
Unit Cost (£) | Units or Months | Year 1 Cost (£) | Year 2 Cost (£) |
| DD Facility Setup Fee (Renewal £95) | 250 | 1 | 250 | 95 |
| Fixed Monthly Admin and Management Charge | 30 | 12 | 360 | 360 |
| New Customer Setup Charges (£1.00 x 1200 + 300 new members) | |
|
1500 | 300 |
| Transaction Fees at 25p per customer per transaction | 300 | 12 | 3600 |
3600 |
| Bank charges (same as in-house) | 136 | 12 | 1632 | 1632 |
| |
|
|
|
|
| TOTAL Outsourced Solution Costs | |
|
7,342 | 5,987 |
