Supplier Strategies for Interior Designers: Payments, Terms & Partnerships

Every designer knows the feeling: you’ve picked the perfect piece for a client, you’re excited to see it in the space… and then the supplier side of things gets messy.

Maybe you had to pay a hefty deposit months before delivery. Maybe a change order slipped through the cracks. Or maybe that long-overdue invoice shows up just as you think the project is wrapped.

Sound familiar? You’re not alone.

Managing suppliers is one of those unglamorous parts of running a design business that can make or break your cash flow — and your sanity. Let’s talk about the most common challenges I see designers face and how to handle them in a way that keeps both your projects and your books on track.

1. Deposits Paid to Suppliers

You kick off a project and send a big deposit to secure a custom sofa or a tile order. It feels like money spent — but in accounting terms, it isn’t an expense yet.

If you log it as an expense right away, your books start showing higher costs and lower profits, even though the goods haven’t arrived.

💡 Best practice: Record deposits as prepaid expenses. This shows that the payment is “on hold” until the item is delivered or the service is completed. Track the status of the order to determine when to move the prepayment as an expense for this project.

2. Change Orders for Suppliers

Here’s the thing: projects almost always change. A client decides on a different finish, or a supplier has to adjust pricing because of material availability.

If you’re not on top of it, these changes can lead to miscommunication, surprise costs, and shrinking margins.

💡 Best practice: Document every change order in writing — even the tiny ones. Update both your client invoices and your supplier purchase orders right away. Keep track of this change in your project management software of choice. This will ensure you do not leave any money on the table.

3. Late Invoicing from Suppliers

We’ve all had that moment: months after a project wrapped, a random supplier invoice lands in your inbox. It throws off your budgeting, sometimes just when you thought everything was balanced.

💡 Best practice: Use a purchase order system and include Include expected delivery dates, payment terms, and total amounts. With a PO in place, your records track what should be billed and when, so you don’t rely solely on the vendor to send invoices.

4. Negotiating Better Terms and Discounts

A lot of designers don’t realize they have negotiating power — especially if you’re a repeat customer or placing a large order. Accepting the default payment terms (like net 30 days) can put unnecessary pressure on your cash flow.

💡 Best practice: Build relationships with your suppliers so you can ask for what you need — whether it’s extended payment terms (net 30 or 45 days) or bulk order discounts. A little negotiation can go a long way toward protecting your margins.

5. Creating Partnerships with Suppliers

Here’s a tip seasoned designers will nod along to: the best supplier relationships go way beyond transactions.

When you treat suppliers as true partners — sharing your upcoming projects, being consistent with orders, and working through challenges together — they’re more likely to prioritize you. That can mean quicker delivery times, better service, even access to new products before everyone else.

💡 Best practice: Invest in these relationships. When your suppliers see you as a valued partner (not just another order), they’ll go the extra mile to help your projects succeed.

In Conclusion:

Suppliers can make or break a project — but a few smart habits go a long way. Track deposits correctly, document every change order, stay on top of invoices, negotiate better terms, and build strong partnerships.

💡 Quick tip: Even small tweaks in your supplier workflow can save time, reduce stress, and protect your profits.

✨ Your next step: Take a look at your current processes today. Ask yourself: Are deposits tracked? Are changes documented? Could you negotiate better terms or strengthen partnerships? Start with one thing — you’ll feel the difference immediately, and your projects (and your sanity) will thank you.

If you need help with improving your supplier's workflow, contact us.