Why Inventory Is Eating Your Cash Flow

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · May 23, 2026 · 8m · transcript

In this episode of Cash Flow Conversations with Fexingo, Lucas and Luna drill into a silent cash-flow killer: inventory. Lucas explains why holding too much stock can tie up 30 to 50 percent of a small business's working capital, using the example of a Seattle-based coffee roaster that lost $120,000 in a single quarter because it couldn't turn green beans into cash fast enough. They walk through the key metric — inventory turnover ratio — and how it connects to the broader cash conversion cycle. Lucas shares a practical rule of thumb: if your inventory sits for more than 60 days…