Industry sector: Consumer services

Window cleaner: Payments to creditors

Window cleaning is a labour intensive business which doesn't require much in the way of materials or stock. So your Payments to creditors figure will probably be small.

If you do buy supplies (such as disposable wipes) 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. You will probably be buying goods from:

  • specialist janitorial suppliers
  • cleaning equipment wholesalers

A number of suppliers now have online ordering facilities.

Setting up an account

For convenience it is 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

You may have to pay carriage charges on small orders. Visit the Federation of Window Cleaners (FWC) website to see the range of products they sell online.