Direct Debit for wholesalers, distributors and manufacturers

Direct 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. 

GoCardless helps wholesalers, distributors and manufacturers of all sizes and in a variety of industries to collect fees by Direct Debit. In particular, Direct Debit can help you in two ways:

  1. Safely offer payments on account 
  2. Reduce late payments

Direct Debit lets you 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. 

Direct Debit reduces late payments

60% of SMEs 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, the UK’s leading premium coffee distributor, switched to 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, says, “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 the UK’s leading Direct Debit payments provider. It lets you automate the whole payment process and manage everything online. It 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 (e.g. Sage, Xero and KashFlow to enable easy invoicing and payment reconciliation.
  • Simple, low pricing. All it costs is 1% per transaction, capped at £2.  Scale pricing is also available.

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

‹ View table of contents Next page ›

Latest features

How to maximise Direct Debit uptake

From automation and flexibility to low transaction costs and low failure rates, the benefits of Direct Debit have even more impact when more customers are using it. Find out how you can encourage more of your customers to pay by Direct Debit.

Hidden costs of business that can eat up your investment

Some business costs have a habit of dropping under the radar – until you reach scale and it turns out that they represent a major cost to your profitability.

Free e-Guide: SaaS success across the customer lifecycle

We asked some of the most successful B2B SaaS entrepreneurs about how they scale, improve customer experiences and optimise every touch point. This is what they said.

View all


Reference guides

View all

By using this site you agree to the use of cookies for analytics, personalised content and ads. Learn more