Industry sector: Business services

Office based: Payments to creditors


When you buy goods or services on account instead of paying cash there and then, the suppliers of these goods or services are your creditors until you pay them. Enter in your cash flow forecast the payments you will make to your creditors (including VAT) in the months in which you will pay them.

Depending on the nature of your proposed business, your creditors might be:

  • suppliers of goods and materials that you will include in the supply of your services to clients. For example, an IT consultant might purchase hardware and software for resale as part of a computer system package for a client
  • specialist consultants whose services you use from time to time
  • self-employed sub-contractors who invoice you for work done

You might also agree with clients that you will pay various expenses, or disbursements, on their behalf, and you should enter these amounts here. Bear in mind that you will probably not receive reimbursement from your client until some time later.