Profit and cash move on different clocks
A sale may be profitable while its inventory was paid for months earlier and the proceeds arrive later. Rapid growth can widen this gap because the next purchase order is due before earlier inventory has returned its cash.
Map each cash milestone
- Supplier deposit, balance payment, and tooling or packaging payments.
- Production, freight, customs, preparation, and receiving time.
- Sell-through period and the advertising cash required to support it.
- Returns, account reserves, settlement timing, and bank receipt.
- Taxes and operating expenses due before cash is fully recovered.
Measure the funding gap by scenario
Calculate the highest cumulative cash requirement under base, faster-growth, and slower-sell-through cases. The upside case can require the most funding because replenishment accelerates even when every order is profitable.
Choose growth that the cash cycle can support
Prioritize products with healthy contribution, reliable demand, and manageable replenishment. Negotiate payment timing, reduce unnecessary inventory, and pace advertising before relying on expensive emergency funding.