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What is Facilities Managed Direct Debit?

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What is Facilities Managed Direct Debit?

A guide for business owners

Whether you’re a start-up, or a small business looking to expand your capabilities with new payment options, the ability to accept Direct Debit transactions can be a valuable asset to your business.

If Direct Debit is something you want to be able to provide, you may be considering applying for Direct Debit status from your bank.

However, it can be a lot of hassle and effort to apply for Direct Debit status, there’s a lot of hoops to jump through. Plus, even if you do apply, it can be difficult to secure Direct Debit status if your business is relatively small or doesn’t have a long trading history.

But, not applying for or being refused Direct Debit status by a bank isn’t the end of the road for your business. A Facilities Managed Direct Debit service could be a way for your business to operate Direct Debit payments despite not having approval from a bank.

What is a Facilities Managed Direct Debit?

Facilities Managed is a solution for those without their own bank approved Direct Debit status.

It involves an outside service, the Facilities Management provider, taking responsibility for the collection and administration of Direct Debits on behalf of another business or organisation; the Facilities Management client.

A Facilities Management provider must be accredited by Bacs to be authorised to provide Facilities Managed Direct Debits.

Using a Facilities Managed Direct Debit means your business can take Direct Debit payments from customers through a recognised proxy provider who will use their Bacs accredited status to take responsibility for your business’s Direct Debit payments.

What are the benefits of having Facilities Managed Direct Debit capabilities?

When your business utilises a Facilities Managed Direct Debit provider, you’re able to issue and collect direct debit payments from your customers with your business’s name on their statements.

This means you will have fewer queries and cancellations as there will be no questions from customers over where the money has been directed.

If you are operating a start-up business, or are an established business looking to expand, having the enhanced credibility of your business’s name on your customers’ transaction statements can be hugely beneficial.

Plus, with a Facilities Managed Direct Debit, you can rest easy knowing that your Direct Debit payments are being securely processed by qualified experts.

What happens when your business grows?

When your business expands and grows to the point that you’re able to secure your own Direct Debit status from a bank, you can take control of your own Direct Debit payments and collections with no disruption to your customers.

All you need do, with the FM provider’s assistance is to arrange for all the Direct Debit Instructions (DDIs) already set up for your business, to be transferred by Bacs to your new unique Service User Number, all without your customers having to complete new DDIs. 

And if during your time using a Facilities Managed Direct Debit provider you wish to change to a different Bacs accredited FM provider, you can do so without any disruption to your customers. Again, this is simply achieved by transferring your unique Service User Number or the relevant DDIs to your new provider.

If your business has been previously denied Direct Debit status, or you simply want the ease of your business’s Direct Debit transactions being taken care of, on your behalf, by trusted professionals, a Facilities Managed Direct Debit service could be for you.

As a Bacs accredited Facilities Managed Direct Debit provider, RSM 2000 is able to offer your business reliable and responsible Direct Debit payment solutions. For more information about using RSM 2000’s Facilities Managed Direct Debit solutions for your business, get in touch with us here.

RSM 2000 Limited is authorised and regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 (register reference 729928) for the provision of payment services.

RSM 2000 Limited is authorised and regulated by the Financial Conduct Authority for Consumer Credit Activity (register reference 715057).