October 5, 2009Brisbane-based electronic powerhouse
Ezidebit is helping increase the cash flow lifeblood of many Australian businesses through its unique direct debit functionality.
Ezidebit is considered Australia’s leading provider of outsourced payment solutions, processing in excess of half a million transactions per month.
The company is finding itself in big demand in light of a recent ASIC report which showed 40 percent of Australian businesses fail because of inadequate cash flow.
Of the 5,000 businesses it deals with every month, childcare and health and fitness sectors are stand-out regulars.
Chief Executive Officer Charlie Holland (pictured) says in a tight economy, businesses need to be particularly vigilant about getting paid on time to keep cash flowing.
“By using Ezidebit, businesses firstly remove the need for having to ask for money from clients or customers, and instead ask once and never have to ask again,” Holland explains.
“Secondly, our direct debit functionality, which is custom-created to integrate with existing client systems, enables businesses to control when they are paid at the same time as significantly minimizing administration costs and processes and streamlining client relationships,” he says.
“One of the leading reasons why many SMEs in Australia fail is because of inadequate cash flow, not profit, and in the majority of cases this is because customers don’t adhere to billing periods, be they seven days, 30, 60 or longer. A critical mass of outstanding payments can be the closure calling card for businesses of all shapes and sizes.”
The tailored services of Ezidebit work by facilitating electronic payments through direct billing systems, on a regular or one-off basis.
These act to streamline client-business relationships and ensure business cash flow.
“The adage that cash is king has never been more true - by delivering cash flow businesses have more working capital to reinvest in their businesses whether that be additional staff, equipment or marketing and sales,” Holland says.
“Businesses need to practice good cash flow management to keep money flowing in a positive direction and while the buoyancy of the Australian economy in the past may have cushioned late payments, it’s not good business management from either side to accept this practice,” he says.
“Not only is the Ezidebit functionality a coup for businesses, but it works in favour of the client or customer as well, in locking down payment dates and amounts, so they too can set and forget. It takes what can be a very time-heavy administration function away from both company and client, freeing both for other tasks.”
The reason for high demand from the childcare and fitness sectors is due to the poor cash flow and payment cultures of both industries.
Recent expansion into these areas alone has seen Ezidebit take on more than 2,000 childcare centres or providers and almost 1, 200 health and fitness businesses.
These range from sporting clubs, fitness centres and gyms to personal trainers and swim schools, including leading brands such as
Curves and
Jetts Fitness.
“The childcare industry is a great example of where busy parents can simply forget to pay their fees and thus cause major cash flow interruptions for the centre. Ezidebit seamlessly interfaces with existing computer management software and means parents can set and forget, while childcare administrators exponentially reduce the administration time and costs of billing,” Holland says.
“Whether a wholesaler, retailer, school, subscription based or service provider, Ezidebit is able to create and tailor a trusted electronic billing and payments system that will guarantee improved cash flow,” he says.
Established in 1998, Queensland-headquartered Ezidebit offered the first specialised automated direct debit and credit card transactions service in Australia.
A team of over 40 people deliver the Ezidebit direct debit functionality, service and development operations to businesses across multiple industries, including property management, tourism and finance.
Over the past 10 years, Ezidebit has achieved strong revenue growth and currently processes over a billion dollars in payments annually.
Privately managed by a board of directors, the company is one of the only Australian outsourced payment providers with an Australian Financial Services License.
Its range of custom payment solutions for improving cash flow include automatic direct debit payments, credit card processing, BPAY, phone and online billing options and integration with major computer management software.