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ronetw's Avatar ronetw ronetw is offline
Join Date: Nov 2008
Posts: 203
Payment - Standing Order

Hi All

I'm in the process of getting my clients to pay via standing order for one of the services my business offers. I've sent a standing order mandate which I get them to sign and send back to me, my question here is if I were to then post this standing order to the manager at their bank would they setup the standing order or would my clients need to do this?

If anyone has any tips they might be able to share that would be great.

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Smile Smile is offline
Join Date: Dec 2006
Posts: 62

Customers normally set-up standing orders themselves although you can send the form to their bank it is a lot easier for the customer to do it and its usually instant.

If you are planning on doing a few payments like this then direct debits are a better way as if the amount changes you can change the direct debit and everyone is a bit better protected by a direct debit.

A standing order amount can only be changed by the customer and if they do not have enough funds in the bank it won't be paid (which is good for them) but direct debits still tend to get paid if they don't have enough money, (not good for them and the bank charges them, but you usually still get paid).
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ian37a ian37a is offline
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Join Date: Jun 2009
Posts: 18
We use direct debits for over 100 customers each month but sadly we do get failures if the customer does not have sufficient funds. You can not just start taking direct debits, you need to register with your bank or through a third party provider first. In my experience startups find the banks awkward and expensive for direct debits so a third party provider may be a better bet. However you may need to sign a personal guarantee with a third party.

If the amount you want to collect is the same every month, it might be worth going the standing order route as that is easier.

Good luck
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m8internet m8internet is offline
Join Date: Apr 2008
Location: Cumbernauld, Scotland
Posts: 772
As above, Standing Orders are payments made from your customer to yourself
You can send these out to customers, but they should then send this to their bank
You have NO control over these and the customer can cancel / amend these at any time

With a Direct Debit this is an instruction from YOUR bank to that of the customer
That customer then authorises the instruction, when needs to be sent back to you
There are also online versions, where the customer simply agrees and approves, you then send this to YOUR bank

Equally, some banks can now process these online
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visagephoto's Avatar visagephoto visagephoto is offline
Join Date: Feb 2005
Location: Glasgow
Posts: 106
I used to forward S/O mandates directly to my clients banks on their behalf, as In most cases it was the only way to ensure I was paid.

A few clients deliberately provided wrong information on their mandates ie. correct S/C but wrong branch address etc., a quick call to the nearest branch (armed with correct S/C etc.) and explaining the situation I was given the correct branch details and advised to amend the form.

All S/O requests were honoured and paid by each bank until the few clients who deliberately provided incorrect information received their bank statements and subsequently cancelled.

But then I'm sure that D/Ds can also be cancelled.
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