How Inventory Shrinkage Starves Small Business Cash Flow

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Sep 27, 2026 · 12m · transcript

Inventory shrinkage is the silent killer of small business liquidity, yet most owners treat it as an accounting nuisance rather than a cash flow emergency. In this episode, Lucas and Luna examine how a mid-sized electronics distributor lost four percent of its inventory value to theft, damage, and administrative error, effectively burning through hundreds of thousands of dollars in working capital every year. We break down why traditional insurance policies rarely cover these losses, how poor receiving processes create hidden gaps between paid suppliers and sold goods, and three specific…