Industry sector: Consumer services

Picture framing: Payments to creditors

You might purchase materials for your picture frames from several different suppliers - manufacturers, importers and wholesalers. Several large firms are able to supply a wide range of picture framing materials and equipment. You may make use of a wide range of materials including:

  • mouldings (usually wooden and available in a huge range of styles and finishes)
  • stains, waxes, gilder's paste
  • glass and backing board (plastic, foam, card, MDF)
  • fixing plates, hanging hooks and rings
  • tapes and glues
  • nails, V-nails and flexible tabs

You can find details of suppliers of materials and equipment in the classified section of Art + Framing Today. The Fine Art Trade Guild's 'find a member' directory also includes a 'trade suppliers' section.

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

Setting up an account

For convenience - and to get the best terms of trade - it's usually best to set up accounts with your main suppliers. To do this you may be asked to provide bank and trade references. Until the account facility has been granted you will have to pay for your order at the time you place it. This is known as paying on a pro forma basis.

Once your account has been set up you will be invoiced at regular intervals and expected to pay within a certain number of days of receiving the invoice.

Discounts from suppliers

You may be offered, or be able to negotiate, various discounts from your suppliers. Examples include:

  • early settlement discounts
  • volume discounts

In some cases suppliers may impose minimum order conditions and charge you for delivery.

More information