At Alunta we have decided to createa a dictionary for words and important terms related to running a subcription busniess. You are now reading about “Due date”.
The due date in a subscription business is the deadline by which payments must be made. It has a significant impact on the billing cycle as it determines the start and end dates of service periods. If a customer fails to make a payment by the due date, it could disrupt the billing cycle, potentially leading to service interruption. Moreover, businesses often align their accounting, inventory planning, and service delivery schedules based on these due dates. Therefore, consistent adherence to due dates is crucial for maintaining smooth operations.
There are several strategies businesses can employ for effective due date management. One strategy is automated billing, where payments are automatically deducted from a customer's account on the due date, reducing the chances of late or missed payments. Another strategy is sending timely reminders to customers about upcoming due dates. This can be done via email, text messages or push notifications. Offering flexible payment terms and multiple payment methods can also encourage timely payments. Lastly, businesses can implement a grace period, allowing customers a few extra days to make the payment without service disruption.
Check out other topics in our subscription dictionary below. We've gathered the ones we find most relevant in relation to due date.