How Vendor Credit Terms Free Cash Flow

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Sep 21, 2026 · 9m · transcript

Most small business owners obsess over collecting receivables, but the bigger cash flow lever is often hiding in their payables. In this episode, we explore how aligning payment terms with inventory cycles can unlock working capital without taking on debt. We look at a specific case of a mid-sized electronics distributor that used extended vendor credit to smooth out seasonal spikes, turning late payments into strategic growth. Lucas and Luna break down the mechanics of net thirty versus net sixty terms, the hidden costs of early payment discounts, and why timing your supplier payments…