Cash Flow Gap Calculator
The gap between paying your supplier and getting paid by your retailer is real cash out of pocket. Model the days and dollars of your working capital gap.
The gap between paying and getting paid
The gap between paying your supplier and getting paid by your retailer is real cash out of pocket. Model the days and dollars of your working capital gap.
How the gap is calculated
- Cash conversion cycle = days inventory on hand + customer net terms - supplier payment terms.
- Cash gap = monthly revenue / 30 x cash conversion cycle (zero if the cycle is negative).
- Carrying cost = cash gap x financing rate (monthly cost is one twelfth).
- Early pay discount cost, annualized = discount % x 365 / customer net terms. If it is below your financing rate, offering the discount is the cheaper way to close the gap.
Keep going
Net Terms Cost Calculator
Offering net 30, 60, or 90 terms to retailers isn't free. Model the true carrying cost of outstanding receivables, compare early payment incentives, and see your effective AR cost.
Cash and finance · InteractiveCalculatorInventory Financing Calculator
Compare the true cost of financing inventory through different structures: bank line, trade credit, factoring, and revenue-based. Know your fully loaded financing cost per unit.
Cash and finance · InteractiveCalculatorWorking Capital Calculator
How much cash does your wholesale operation actually need? Model working capital requirements from inventory days, receivable days and payable days, and size your credit facility.
Cash and finance · InteractiveGuideInventory cash flow. The full PO-to-payment cycle.
Model the cash flow impact of inventory cycles, reorder timing, and net terms. Plan your working capital needs before the crunch hits.
Inventory and operations · 26 min readGuideNet Terms: How to Structure, What's Standard, How to Protect Yourself
How to structure Net-30/60/90 terms with retailers. What is standard, how to protect yourself, when to walk away.
Cash and finance · 17 min read
The tools are free. QVINTA does the work.
QVINTA finds the shops that fit your brand, picks the product each one is missing and drafts the pitch, every week. Soon open for beta testing.