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Are monthly billing cycles declining in favour of bespoke billing?

30th October 2020  by Gareth

We were recently asked the above question by leading industry publication, Comms Business. Here’s what our Managing Director, Vincent Disneur, had to say.

Monthly billing cycles have been around for a long time and, at least as far as the channel’s concerned, they’ll be around for a long time to come. We regularly visit our partners’ billing teams to assess their requirements and to find out how they would ideally conduct their billing operations. During these visits we’ve often asked if an ad hoc approach to billing would be preferable to monthly cycles and the question has generally been met with indifference. From a CP’s perspective, why would they want to complicate things and juggle so much everyday when a structured monthly routine is so much simpler to manage.

If anything, we’re seeing the complete opposite. Changing a billing platform gives CPs a perfect opportunity to restructure billing data, tidy it up, and get it all aligned. We frequently take on partners that have got into a mess with their billing by using competitor systems to perform mid-month cycles and bespoke billing. They’re almost always looking to normalise this into regular calendar month aligned billing routines.

Staggered billing cycles are something that’s common in residential/consumer markets but, in business to business environments, there’s just no demand for it; monthly billing is better for everyone. Businesses on the receiving end of the bills want to deal with things in monthly cycles in much the same way as CPs. It’s more manageable, better for cash flow and better for budgeting. There’s other considerations to think about such as direct debit collections. If you do multiple collections per month then you’ll be charged more as a result.

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