Definition

Following the steps from making a sale to getting paid by a customer. Knowing the cycle helps plan for steady cash throughout the month.

What to consider

  • Understand the terms of supplier financing.
  • Negotiate favorable rates.
  • Ensure smooth cash flow in the supply chain.

Real world scenarios

  • A manufacturer secures early payment from a financing partner to pay suppliers promptly.
  • A retailer uses supply chain finance to negotiate better payment terms with vendors.
  • A small business leverages financing to maintain steady production without cash flow interruptions.

Related terms

Entrepreneurial Finances