Direct Debiting System

HSBC Direct Debiting System (DDS) is a collection system for the Main Company and a payment system for the buyer (vendor, branch, distributor or customer), which enables buyers to make payments to the main company through their accounts at HSBC within the limits of their DDS loan limits and conditions set by the Bank. Within this system, payments of the buyers are automatically collected by the Bank on their due dates on behalf of the Main Company and transferred to the Main Company accounts.

Features and Advantages

• Transactions are carried out on the basis of the invoice terms agreed upon by the vendor and the Main Company.
• Within Direct Debit System (with or without a credit line), the Main Company collects receivables from the vendors and/or customers on the basis of the invoice information.
• Collection risk of the Main Company is minimized by the utilization of DDS limit to the vendors.
• The systematic management of collection flow ensures convenience both for the vendor and the Main Company.

Advantages for the Main Company

• Operational workload, and consequent waste of time and operational costs decrease.
• Guarantee monitoring costs decrease.
• Collection risk is minimized with the DDS limit assigned to the vendors.
• Financing cost of vendors decrease.
• With the letter of guarantee, collection costs decrease
• Effective cash flow plans can be made.
• Automatic account recording decreases operational workload.
• Collection, Limit/Risk reports eases monitoring the risk of vendors.

Advantages for the Vendor/Client

• DDS credit limit facilitates easy payment
• Letter of Guarantee, cheques/notes follow-up costs are reduced.
• The transportation risk, cost and consequent waste of time decreases parallel to the decrease in the usage of cheques and notes.

For more

For further information please call HSBC Bank Telephone Banking at 444 0 424.