Protect Yourself When Purchasing for Clients
As an interior designer, you wear a lot of hats—creative visionary, project manager, client therapist… and often, purchasing agent. When we’re sourcing furnishings, materials, and finishes on behalf of clients, you are also assuming serious financial risk.
In today’s unpredictable climate related to global conflicts, unemployment and some talks of a recession in the future, it’s more important than ever to protect yourself when placing orders. One wrong move can put your reputation, your profit margin, or even your entire project at risk.
I worked in banking with small businesses in 2008 when things turned upside down and to say it was chaotic for some of these businesses is an understatement. Witnessing these owners' dreams fall to pieces will live my memories forever, and as I have been working to make sure I don’t fall into some of those same landmines, I thought I would share a couple of things to keep in mind!
Why This Matters More Than Ever
Although most of us experience the shipping delays from the covid era, there is a chance for other curveballs you may need to start navigating.
Global conflicts that interrupt supply chains
Vendor bankruptcies that swallow deposits
Unpredictable pricing and freight surcharges
It’s a perfect storm—and without protection, you could be left holding the bag.
1. Get It In Writing
Your contract with your client should clearly spell out that you are acting as a purchasing agent, not the seller or guarantor. That distinction should help protect you legally and financially. Be sure to include:
All purchases are final and non-refundable
Lead times are estimates, not guarantees
Defective or damaged goods are covered by the manufacturer's warranty, not you
You’re not responsible for delays or price increases outside of your control
2. Collect Full Payment Upfront
Avoid fronting money for orders. Even for repeat clients.
Require 100% payment before placing orders
Charge a procurement fee to cover your time and liability
Use a credit card authorization form for transparency and protection
Keep a separate bank account, similar to an escrow account for those funds.
If you pay out of pocket and something goes wrong, recovering that money can be a nightmare.
3. Use a Credit Card Whenever Possible
Many designers balk at paying the 3% fee. But ask yourself, would you rather lose 3%… or 100%? I wish vendors would just add that 3% into the cost rather than a line item as an option, but in a less risky economy saving that 3% can add up, so I also can appreciate the option. Using a credit card gives you:
Fraud protection
The ability to dispute charges if the vendor fails to deliver
A clear transaction record
Wire transfers and checks offer zero recourse. Build the 3% into your fees and consider it an insurance policy.
4. Know the Vendor Terms
Before placing an order, ask:
What are their cancellation and restocking policies?
How long is the lead time, and is it subject to change?
What’s their claims process for damages or defects?
Can you order under the client’s name to shift liability?
Do your homework. A few questions now can save you thousands later.
5. Include a Force Majeure Clause
This clause protects you from events beyond your control—war, weather delays, strikes, raw material shortages, etc. It gives you legal standing if something goes sideways that’s outside your power to fix.
Add this to every contract. No exceptions.
6. Watch for Red Flags
Vendors who only accept wire transfers
No clear cancellation or damage policy
Unusually low prices
No direct contact person or physical address
If it feels off, it probably is. Trust your gut, do a little research and feel free to contact me. I am happy to help check out to the best that I can!
7. Protect Yourself from Credit Card Refund Fees
When clients pay by credit card, you pay a processing fee—typically around 3%. But here’s the catch: if the client cancels and you issue a refund, you don’t get that 3% fee back.
That’s money lost for a transaction that never even moved forward.
What to Do:
Include a non-refundable cancellation fee in your contract—ideally 3% or more—to cover this exact scenario. It’s a fair and reasonable way to protect your business from losing money on processing fees when a project doesn’t move forward.
If you accept credit cards, this clause is a must.
Real Story: What Happens When the Vendor Disappears
Back when I was in banking, I had a client who owned a wedding dress shop. One week after we noticed red flags in their cash flow, they suddenly shut their doors without notice.
We started getting calls—heartbroken brides who had put down deposits or paid in full. Dresses gone. Doors locked.
Those who paid with credit cards were able to get their money back.But those who paid by debit card or check? They lost everything.
Reminder: Debit cards are not credit cards. They don’t offer the same protections.
This is exactly why I always advise designers to use credit cards when placing big orders—and educate your clients on the difference, too.
Protect Your Business—Not Just Your Client
You can’t control global disruptions, but you can control your contract, payment terms, and policies. Setting clear boundaries protects both your business and your peace of mind.
Grab Your Free Checklist:
I created a Purchasing Protection Checklist for Designers to help you cover all the right bases.
It includes:
Key contract clauses
Vendor vetting tips
Payment protection strategies
A sample credit card authorization form
Disclaimer
I am not an attorney, and this information is not intended as legal advice. These recommendations are based on my personal experience in the design industry and are meant to offer general guidance only. For specific legal advice or contract language, please consult a qualified attorney.
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