Latest / Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance
How Inventory Prepayments Fix Cash Flow
Most small business owners think working capital is about collecting receivables faster. But the real cash leak often happens before the sale, when paying suppliers locks up liquidity. We examine how prepaying for inventory can actually free up cash by triggering deeper discounts and prioritized production slots. Using a mid-sized electronics distributor as our case study, we break down the math of whether it makes sense to pay early or wait for standard terms. You will learn the specific discount threshold where prepayment becomes more profitable than holding onto cash, and how to negotiate…
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