An independent report commissioned by Klipboard has revealed that late payments have become “almost universal across the wholesale and distribution sector,” with 98% of businesses reporting overdue customer payments.
Based on a survey of over 300 distribution businesses and 250 trade buyers from across the UK, the research was commissioned to better understand how payment processes are affecting customer experience, operational efficiency and cash flow across the distribution sector. The results explore the biggest payment challenges facing the industry, the causes and impact of late payments, the most common issues buyers have with payments and the ways customers would prefer to pay.
Key findings
98% of distributors deal with late payments.
56% spend over six hours per week on manual payment admin.
96% employ at least one person dedicated to payments and credit control.
94% believe offering multiple payment options boosts customer loyalty.
Just 12% of distributors operate with a single payment provider.
The findings suggest late payments remain a near-universal challenge for distributors, placing pressure on cash flow while creating additional work for finance and credit control teams. The issue remains firmly in the spotlight following the UK Government’s announcement earlier this year of new measures aimed at tackling late payments and strengthening protections for suppliers.
At the same time, distributors are under growing pressure to offer customers more choice in how and when they pay. While many businesses have introduced additional payment methods and providers to improve the customer experience, doing so can create disconnected systems, more manual administration and more difficult reconciliation.
This ‘payment sprawl’ can make it harder to track and collect payments efficiently, contributing to delays and cash flow challenges.
Lochan Sim, VP of Payments at Klipboard, commented: “The research shows that late payments have become a fact of life for almost every distributor, creating unnecessary pressure on cash flow and placing a significant administrative burden on finance teams.
“The businesses we work with want faster, more efficient ways to collect payments – without creating additional complexity for their teams or customers. Our mission is simple: to give distributors access to modern payment technology that helps them get paid faster, operate more efficiently and make it easier for customers to do business with them. The easier you are to buy from and pay, the more likely customers are to come back and buy again.”
To download a copy of The 2026 Distribution Payments Report, visit: https://www.klipboard.com/payment-in-distribution
This independent research, carried out by Censuswide and commissioned by Klipboard, surveyed 327 distribution businesses and 250 trade buyers across the UK between 13 March and 24 March 2026. The research explored payment practices, customer preferences and the operational challenges associated with payment processing in the distribution sector.
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