How schools can shore up revenue through direct debit
For independent and catholic schools reliant on annual fees paid by families, late payments and bad debt can throw cash flow budgets into total disarray.
Accounts payable staff can often drown in a cycle of debt recovery that sees them constantly chipping away at, but never actually clearing the backlog of debt. This can be exacerbated during challenging and changeable economic times, when families can struggle to keep up with school fees. Often the knock-on effect for schools is unavoidable fee hikes, which can make school even more unaffordable.
So for the many Australian schools already managing large volumes of late and overdue fees, what’s the solution? How can schools recoup these untapped cash reserves?
PaySmart believes that by giving families the option to pay their fees over the year in more manageable portions via direct debit billing, schools can transform their cash flow from sporadic to consistent.
By implementing a fee policy that protects the institution financially and improves cash flow, schools can take control of their operating budgets, all while providing a more affordable payment plan that parents can actually meet—a win-win scenario.
And if for any reason, a payment is unsuccessful, PaySmart’s comprehensive debtor management system kicks in—leaving PaySmart to do the follow up and chasing down, and giving your staff more time to focus on school business.
Here’s what one of our clients from the schools sector said about PaySmart:
“Direct debit services can play a key role in financial recovery. I recently used PaySmart as an integral part of a fee recovery program, which reduced the outstanding fees by several hundred thousand dollars and all but eliminated delinquent accounts. For schools struggling with unpaid fees—and I know there’s a lot of them out there—direct debit services are definitely worth including in their strategic approach to fees.”
— Ian Fleming, Credit Management Consultant
To find out more about how PaySmart can help your school get on the front foot with cash flow and debt recovery, contact PaySmart today https://www.ffapaysmart.com.au/contact-us/
