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Feature in Focus – Debt-Free Design

March Feature in Focus- Debt Free design - Blog image

Feature in Focus – Debt-Free Design

Magicbooking is a debt-free system, and for this month’s feature in focus, we wanted to talk about how this is achieved.  Debt-free design means that you do not have to accept debts with parents at all if you don’t want to.  If you do choose to accept debts, magicbooking allows you to decide how much debt you accept.  Magicbooking shows you how much debt you are owed, and from whom.  It also has powerful controls that make sure debt is cleared as quickly as possible.  The controls and features around debt are:

Overdraft Thresholds

The overdraft threshold is one of the key tools to achieve this.  This will allow you to decide how much debt your parents can get into with your school or club.  You can decide at an organisation or a setting level, exactly how much debt is the limit.  It is possible, and several clubs do operate in this way, to disallow any debts at all.  When a parent then goes on to book an activity, if they have debts, then they won’t be able to book.  This prevents parents from racking up large amounts of debt by booking their child onto many things without paying for them.  Also, magicbooking gives you the ability to decide how you want to be paid by your parents.  This can include various types of payment such as cash, Tax-Free Childcare, single card payment, instalment and more.

Payment Options

Magicbooking lets you give your parents options on how they pay.  As a consequence, parents are more likely to pay using a method that suits them rather than going into debt.  To facilitate this, magicbooking has many systems designed to make this as streamlined and automated as possible.  This includes the finance and reconciliation tool, which allows you to reconcile payments received with what was expected.  Tax-Free Childcare and standing orders can be quickly checked, reconciled and missing payments chased if needs be.  Granular information is then available on what parent missed what amount and when.  Debts are automatically applied to accounts if any payments have been missed and that parent won’t then be able to book anything else.

Credit

The system lets you give credit when you need.  This keeps you debt-free because, for example, it allows parents to make instalment payments of varying amounts.  If a parent has a varied income, they can make payments as a credit when they have the funds available, so available credit is applied when they book.  This produces little to no extra admin work for you juggling this.  It’s important to note that this isn’t the same as a wallet feature, We have discussed before how magicbookings 24/7 availability increases the likelihood that parents will book.  Combining this with having many ways that parents can pay makes it much more likely that parents will pay.  This flexibility comes with a significant decrease in your admin tasks, and the time that they take.

These features combine to create the magicbooking debt-free design.  They form one part of how the system works to increase your revenues.  The other part of the picture is in how the system saves time, making both more time and money available.  The time savings of magicbooking are significant, with clients reporting a reduction in the amount of admin time by ~60%.  You can read more details about how magicbooking increases revenue by clicking here.

See how magicbooking can help your school or club become debt-free.  Book a free demo using the tool below.