Skip to content
Go to GoCardless homepage
Pricing
Log inSign up
BreadcrumbResourcesDirect Debit: A Beginner's Guide

Direct Debit for wholesalers, distributors, and manufacturers

Direct Debit - also known as ACH Debit or bank debit - helps wholesalers, distributors, and manufacturers safely offer payments on account and reduce late payments.

Each year more businesses in the wholesale, distribution, and manufacturing industries move to Direct Debit to improve their cash flow and reduce admin. If you deal with a large number of regular clients, it could help you too. 

For wholesalers, distributors, and manufacturers in particular, Direct Debit can help in two ways:

  1. Safely offer payments on account 

  2. Reduce late payments

Safely offer payments on account

Customers often ask to pay on account, but without a guaranteed way to collect payment, it’s not advisable to offer large amounts of credit.

If it’s not managed properly, offering credit to customers can put your company at risk and damage your cash flow.

Once you have completed a credit check on the customer, Direct Debit provides a safe way to start taking payments on account.

Reduce late payments

60% of small-to-medium businesses (SMBs) with serious cash flow issues blame late payments. Without a reliable cash flow, growing your business becomes difficult – especially if you’re in an industry with a short buying season or where you depend on a small number of ongoing relationships.

Has Bean Coffee, a premium coffee distributor in the UK, switched to Direct Debit provided by GoCardless to help them deal with invoices being paid up to four months late. Late payments made it difficult for them to buy enough coffee beans for the year. 

Since using Direct Debit with GoCardless, the average payment term has dropped from 62 days to 41.  Steve Leighton, the owner of Has Bean, said, “Now we have control over when we get paid, and we can keep uncomfortable conversations about money to a minimum.”

How to get started with Direct Debit

You can start taking Direct Debit via a bank, bureau, or GoCardless. GoCardless is a specialist provider of Direct Debit. With GoCardless, you can automate your payment process and manage everything online. GoCardless offers:

  • Quick and easy sign up - You can sign up instantly and for free.

  • Easy and efficient management - You can collect recurring and one-off payments automatically. GoCardless integrates with the most popular accounting packages (such as SageXero and many more) to enable easy invoicing and payment reconciliation.

  • Simple, low pricing - See full details of our competitive pricing options here.

If you would like to find out more about accessing Direct Debit, you may find our 60 second guide to Direct Debit providers helpful.

GoCardless makes it easy to collect recurring payments

Sign upContact sales

PreviousDirect Debit in a nutshell: A guide for merchants

Interested in automating the way you get paid? GoCardless can help

Contact sales

Contact Us

Sales

Contact sales

+1-415-223-0253

help@gocardless.com

Support

help@gocardless.com

Seen 'GoCardless Ltd' on your bank statement? Learn more

GoCardless Ltd., 600 California St, San Francisco, CA 94108, USA

GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration number 597190, for the provision of payment services.