Map the order timeline

Place supplier deposits, production, shipping, delivery and customer collection on a single timeline. Identify who pays each amount and when. The gap between outgoing and incoming cash determines the resources needed to fulfil the order, independent of the final margin.

Include operational uncertainty

Consider production changes, delayed acceptance and replacement units where relevant. Use documented terms rather than assuming immediate payment. A modest delay can increase the cash tied up in an order even if the selling price and product cost remain unchanged.

Choose practical controls

Discuss order sizing, deposits, staged delivery and collection processes with the appropriate commercial owners. The aim is to align growth with cash capacity. Do not assume that more orders always improve short-term liquidity; faster sales can expand the funding gap if fulfilment is paid upfront. Review the gap at the order size you actually expect to accept. A process that is manageable for a small pilot can require substantially more funding at a corporate volume, even when the margin percentage and supplier terms remain unchanged.

Imagine this

Illustrative operating example

A hypothetical order sells for $100,000 and requires $60,000 of supplier and delivery payments before collection. The business may need to fund that $60,000 gap even though the difference between sales value and those costs is $40,000.

Make it practical.

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