26 Standing Order Definition for Future Building

Standing order definition: A standing order is an automated method of making payments.

Where a person or business instructs their bank to pay another person or business a fixed amount of money at regular (fixed) intervals.

The payer controls the standing order; they set it up themselves, and choose the amount and frequency.

Standing orders are created to cover a set period of time (e.g. every month for a year).

Or until they are cancelled, according to gocardless.com.

Build your future by investing in the present. Take steps that lead to a successful career by being informed and innovative. Make wise financial decisions that will offer stability and security for the future.

And take care of yourself and your loved ones by establishing priorities for family, health, and joy.

There are steps you can take now to improve career success, financial stability, and personal fulfilment.

Building your future begins with building your present.

You have to be burning with an idea, or a problem, or a wrong that you want to right. If you’re not passionate enough from the start, you can request publication of your article for publication by sending it to us via our Email below. wikitk126@gmail.com or SMS/WhatsApp) or call +2347034920650.  Click here to start business now with businesshab.com

businesshabblog@gmail.com

Read on: 10 Tips to Increase Mobile Phone Shop Profits

Any person or company with an account can set up a standing order.

Either online, over the phone or in-person at a branch of their bank.

1. Standing Order background

A STANDING ORDER is different from a direct debit payment. A standing order is essentially an instruction from the payer to their bank, telling their bank to ‘push’ funds to another person or organisation.

In contrast, when you set up a direct debit, the person or organisation receiving payment asks permission from the payer to ‘pull’ funds from their account on a recurring basis.

See related: Tips to Level-Up your Business 

Some small businesses collect regular payments from customers by standing orders.

Receiving payment by standing order generally costs nothing, and, once the order is up and running, the business can rest assured that payments will be collected automatically and on time.

However there are drawbacks: a customer can change or cancel the payment without notifying you, so you will have to rely on them to get this part right.

Read also: 28 Tips to Partner with Dangote Company

2. How does a standing order work?

The first step in setting up a standing order requires the payer to contact their bank to request it.

With some banks and building societies, standing orders can be set up online or over the phone.

The payer then completes a standing order form (paper or online) and gives it to their bank.

This will include details of the account number and sort code of the person or organisation being paid.

Banks don’t usually charge anything to the payer or payee for setting up or using standing orders.

It is important to keep in mind that customers can cancel a standing order at any time, or change the amount or payment date.

Standing orders are created to cover a set period of time (e.g. every month for a year) or until they are cancelled.

Read on: 28 Tips to Partner With Hardy Oil and Gas 

3. Standing orders: use cases

People typically use standing orders for making regular payments, such as rent, mortgage, magazine subscriptions, monthly charity donations or making payments from a current account into a savings account. Standing orders are particularly useful for making regular payments from one individual to another, where direct debit would be a less straightforward option.

A good example of this would be a tenant setting up a standing order to their landlord for monthly rent payments. The amount would be the same each month and would be sent from the tenant’s bank account to the landlord’s at the same time each month, either until the specified length of time runs out or the tenant cancels the standing order via their bank.

Standing order definition

4. What are the advantages of standing orders?

Usually free of charge for both payer and payee.

Easy and quick for the payer to set up.

Useful for making recurring payments between private individuals (such as tenants to the landlord).

Helps businesses to collect regular payments on time, once set up.

5. What are the disadvantages of standing orders?

No payment notifications. This means it could potentially take payee weeks to find out that a payment had failed (either because the payer cancelled it, or because their account lacked the necessary funds to cover the payment amount). If this happens, the payee will need to chase the payer to set up payment all over again.

6.  Less flexibility:

Changing the amount or date of payment requires the payer to cancel the standing order and create a new one.

7.  Risk of late payment:

Many businesses struggle to get customers to set up their standing order quickly, or to amend it as or when required. This brings back the risk of late payment, potentially causing cash flow problems for a business.

8. High admin:

Businesses taking payments by standing order may end up constantly checking their bank to see if payment has arrived and manually updating accounts once it does. This is time and labour that could be better spent elsewhere.

Standing order definition

9. Standing orders for businesses:

This section will guide you through the fine details of using standing orders, including when to use them, how to get access, set up, change and cancel them, their timings, and a useful comparison chart with other recurring payment methods. There is even a handy quiz at the end, to help you decide if standing orders are right for your business.

See also: Top Facebook Advertisement Tips

10. When to use a standing order:

For starters, think about how many customers you currently have. Standing orders are generally a good fit for small businesses, organisations or clubs with less than 25 customers, as a certain level of trust is helpful when using standing orders.

Secondly, think about whether you trust your customers to set up and make their payments on time. If yes, then standing order could be a good option for you, as your customer does all the hard work in setting it up.

Read more on, How to Start Ginger Business

And finally, deciding whether to use a standing order also depends on the types of payments you are most commonly taking. If most of your customers pay by regular, fixed payments, then either standing order or direct debit can be used. It is also possible to use either standing order or direct debit for taking one-off payments, although this is not how they are typically used.

11. Standing Order

For variable payments, standing orders are less useful. They are not great for paying bills with variable amounts or frequencies such as utility bills or credit card debts or in industries where you may want to increase fees or upgrade subscriptions easily.

Direct debit is a better fit here as it is highly flexible. You are in control, rather than the customer, so you can adjust the amount or frequency of payments whenever you need to (as long as you give your customer the required advance notice).

Read on: Top 15 Ways to Fund Mini Flour Production Business

12.  Accessing and setting up standing orders: 

For you as a merchant, there is very little action needed to get a standing order up and running. The customer does most of the heavy lifting. All you have to do is inform the customer of the payment amount and due date. They then need to handle the access and set up process via their usual bank.

See also: 12 Tips to Start Florist Decoration Business 

13. Changes, cancellations and refunds

Once again, you will have to rely on your customer to change the amount or date of payment. To do this, your customer will need to cancel the standing order and then create a new one.

In the case of refunds, once the standing order leaves the customer’s bank account, they can no longer stop it. If they request a refund from you, the terms of your contract will dictate whether or not this happens.

Standing order definition

14. Join a professional association.

Every field has professional associations. Each field is different. Dues are required. But for students and young professionals, they’re often low.

• Inquire into a mentorship through your professional association. They sometimes offer them for members at the entry-level or internship position.
• Request help in finding a job. Professional associations often have job lists that other members provide.
• Seek help with your professional development. Many associations offer seminars, workshops, and literature related to the field they represent.
• Attend your association’s annual conference. It’s an excellent way to network. Conferences include job fairs and a chance to connect with potential employers.
• Check into scholarships if you’re a young association member (high school and college).

15. Move up the ladder.

Make a list of objectives and work toward achieving them. Be its project manager or editor-in-chief. Build on your career by positioning yourself for a successful future.

• Think outside of the box. Come up with new ideas for your company through innovative thinking. Look at the way things are and think about how they could be better.
• Take on projects outside your comfort zone. Taking on more responsibility can help you to learn new skills that will enhance your career.
• Solve problems rather than passing them on to other people. Maintain a “can-do” attitude.
• Ask a mentor to evaluate your strengths and weaknesses to determine if you’re moving toward your career objectives.
• Adapt to new positions. As you move up the ladder recognize that the skills responsible for your promotion may not apply to your new position. Ask a mentor to evaluate your behavioral skill set to ensure you’ve kept pace with your promotion.
• Be serious at work. Focus on your job and complete tasks with speed and consistency.
• Improve your critical thinking skills. Analytical thinkers can foresee problems and prevent them from happening. Take a workshop or seminar that includes critical thinking methodology exercises.
• Network as much as possible. Network within your company and within the community to gain visibility and to establish contacts
  

  Standing order definition

16. Consider making a lateral move when the time is right.

A lateral move within your company or to a new organization can help your career. It gives you the chance to gain additional skills and knowledge. It can help prevent the restlessness and stagnation that sometimes accompanies too much time spent in the same work environment. There are many benefits to a lateral move.

• A lateral move might pair you with a good boss or mentor. This is especially appealing if your current job doesn’t have either.
• Moving to a different part of the company that’s more vibrant will lead to more visibility for you.
• Moving from one organization or department to another will mean that you’re meeting more people, making more contacts, establishing a bigger network of resources.
• Changing to a different department could lead to more advancement opportunities, especially if you’re stagnant in your current department.

17. Set up a budget that’s realistic and will allow you to follow it consistently.

Make a budget that can absorb the unexpected. A budget is a work in progress. Your financial situation will constantly change and if your budget has the flexibility to accommodate plenty of variables you can save, pay off debt and invest to make your money grow.

• Track your expenses. Log all of your expenses for a month so that you’ll know where your money is going. You can use an App or pen and paper but account for everything.
• Allocate about 10% of your income for savings. Better to do a direct deposit so that you won’t be tempted to spend.
• Be patient and consistent. Depositing $100 per month means you’ve saved $48,000 after 40 years. Assuming a seven percent annualized rate of return, your $100 per month deposit would equal more than $260,000.
• Long-term savings should go toward a 401(k). Aim for maximizing your 401(k) deposits.
• Apply about 35% of your savings to housing and utilities.
• Put aside another 10% if you have specific goals in mind, such as buying a new car or paying for you child’s college education.
• Cut back on unnecessary spending. Rent a movie instead of going to the theater. Drop your land phone line. Don’t sign up for cable TV services you don’t need.
• Use the remainder of your income in whatever way you see fit. Food, entertainment, vacations etc.

18. Reduce credit card debt.

Credit cards place you at one remove from your purchases. The process insulates you from your spending because you’re using a card (and not money) and don’t have concrete “proof” that you’re actually spending money. Credit card debt can accumulate quickly.

• Implement a plan to pay off credit card debt using your budget. Know exactly how much you can afford to direct toward your credit card debt.
• Pay off the card with the highest interest rate first, while meeting the minimum payment requirements for other cards.
• Be consistent in your payments. Many people reduce the amount they’re paying toward a credit card debt when they see the balance going down.
• Pay with cash to avoid accumulating more credit card debt. Use cash for groceries, clothes, vacations and non-essentials.
  

  Standing order definition

19. Grow your money by investing wisely.

You can use your budget surplus to invest. Invest regularly over time in a diversity of places.

• Apply 10% of your income to investments. Alternately, the money you’ve budgeted for savings can be split between savings and your investment needs.
• Invest in stocks using an investment firm if you’re not stock-savy. Over the past 70 years stocks have gained an average of 10% per year in value.
• Mutual funds are a good choice for the average investor.
• Offset the potential volatility of stocks by also investing in bonds and CDs. You’re loaning your money out at interest so the balance is growing although usually not at the same rate as stocks.
• Consider using an automated investment service. Their fees are low. They match your time horizon and goals with your investment.
• Try regular monthly direct debit investing. It guarantees you’ll be putting money aside for investments, taking the decision about where the money goes out of your hands.

20. Make time for your family.

What will you remember when you grow older? Will it be nailing the Krimsley account? Or will it be seeing Ben ride a bicycle for the first time? Make a conscious effort to separate work and family time and be “all in” with your family when you’re together.

• Discuss your work hours and expectations with your boss so that you can set some boundaries to prevent work from leeching away at family time.
• Spend time with your spouse and children even if it means getting everyone together in the morning to exercise or stretch for fifteen minutes before leaving the house.
• Institute a “no electronics” rule at the dinner table so that the family will pay attention to each other, rather than to their screens.
• Take regular family vacations. This is a good way to focus solely on family without the worries of the workplace that follow you home.
• Discuss childcare with your spouse. If you’re both working you’ll want to come up with a firm and fair plan with specific responsibilities for both parents.

21. Create a circle of good friends.

Lifetime friendships enrich your life. Friendships add texture to your connection with the world because you’re sharing experiences, reliving good moments, making bonds with people upon who you can rely.

• Make a list of people in your life who you feel close to. Invite them to your home for dinner or tea or to watch a movie. Your home environment allows for less self-conscious conversation.
• Volunteer for a project or group for which you have conviction. Strong friendships are more easily made when you work together on areas of mutual concern and interest.
• Use your current contacts to make friends. If there are people who you’ve met briefly through friends and liked, try getting in touch with them through your mutual friend.
• Join a book reading circle. These circles usually meet regularly. Many of them last for years. Lifetime friendships are formed over a shared interest.

Standing order definition

22. Get involved in activities for which have conviction and to which you connect.