Your Customers Pay in 60 Days.
Your Suppliers Want Money Today.
Your sales may be growing. Your customers may be happy. But if money comes in late and goes out early, your business can still run short of cash.
The problem isn't always a lack of profit. Sometimes it's timing.
Imagine you receive a ₹10 lakh customer order. You need to buy inventory. You need to pay employees. You need to pay suppliers. You need to keep the business running. But your customer says: "We'll pay you in 60 days." Your supplier says: "Payment is due today." That gap has to be managed.
Revenue today doesn't always mean cash today.
This is one of the most important concepts in business cash-flow management. You can make the sale. You can record the revenue. You can even make a profit. But if the customer hasn't paid yet, the cash is still outside your business.
Your business may have to spend four times before it gets paid once.
Order
Customer places an order and expects delivery.
Purchase
You purchase inventory or materials to fulfil the order.
Operate
Employees, logistics, rent and other costs continue.
Collect
The customer finally pays according to the agreed credit terms.
Where is your cash getting stuck?
Select an area below to see what may be creating the cash-flow gap.
Receivables
When customers take 30, 60 or 90 days to pay, your business may have already spent money fulfilling the order. The longer the collection period, the longer your cash remains tied up.
Don't simply chase more sales. Manage the cash cycle.
Improve Collections
Clear payment terms, regular follow-ups and disciplined collections can reduce the time between sales and cash receipt.
Negotiate Supplier Terms
Where commercially possible, negotiate payment terms that better match your customer collection cycle.
Manage Inventory
Avoid tying up excessive cash in inventory that is not moving quickly.
Create a Cash Buffer
Maintaining appropriate liquidity can help the business handle timing mismatches without disrupting operations.
Plan Working Capital
Forecast upcoming receipts and payments rather than looking only at the current bank balance.
Evaluate Financing
When a genuine short-term funding gap exists, suitable working capital facilities may help bridge the timing difference, subject to eligibility and terms.
If cash goes out faster than it comes in, growth itself can create pressure.
The solution isn't always "sell more." Sometimes the business needs to improve the timing between purchases, production, sales, collections and payments.
A ₹10 lakh order can create a cash-flow gap.
A cash-flow problem can become expensive when ignored.
Ignoring receivables
Growing sales without monitoring outstanding customer payments can increase the amount of cash locked outside the business.
Overstocking
Buying more inventory than the business can efficiently sell can unnecessarily tie up working capital.
Borrowing without a plan
Finance should solve a defined cash-flow requirement, not hide an underlying operational problem.
How businesses can manage a 60-day payment gap.
Understand your cash conversion cycle
Track how long it takes to purchase inventory, sell products, collect customer payments and settle supplier obligations. This helps identify where cash remains tied up.
Set clear customer credit terms
Before extending credit, businesses should understand the customer's payment behaviour and establish clear commercial terms.
Monitor outstanding invoices
Don't wait until an invoice is severely overdue. Regular receivables tracking can help identify delayed payments earlier.
Use supplier credit intelligently
Where possible, supplier payment terms can help align cash outflows with customer collections. The terms should always be commercially sustainable for both parties.
Forecast cash flow
A cash-flow forecast can help you see upcoming payments, expected collections and potential funding gaps before they become urgent.
Consider working capital finance when appropriate
Businesses may consider suitable working capital facilities when there is a genuine timing gap between operating cash outflows and expected collections. Eligibility, cost, security and repayment terms vary by lender and product.
60-day payment terms — explained.
Don't let a successful sale become a cash-flow problem.
Good businesses don't just manage revenue. They manage the journey of money from customer to bank account. Understand your working capital cycle before the gap becomes a crisis.
Discuss Your Business Finance Requirement
Your Customers Pay in 60 Days.
Your Suppliers Want Money Today.
Your sales may be growing. Your customers may be happy. But if money comes in late and goes out early, your business can still run short of cash.
The problem isn't always a lack of profit. Sometimes it's timing.
Imagine you receive a ₹10 lakh customer order. You need to buy inventory. You need to pay employees. You need to pay suppliers. You need to keep the business running. But your customer says: "We'll pay you in 60 days." Your supplier says: "Payment is due today." That gap has to be managed.
Revenue today doesn't always mean cash today.
This is one of the most important concepts in business cash-flow management. You can make the sale. You can record the revenue. You can even make a profit. But if the customer hasn't paid yet, the cash is still outside your business.
Your business may have to spend four times before it gets paid once.
Order
Customer places an order and expects delivery.
Purchase
You purchase inventory or materials to fulfil the order.
Operate
Employees, logistics, rent and other costs continue.
Collect
The customer finally pays according to the agreed credit terms.
Where is your cash getting stuck?
Select an area below to see what may be creating the cash-flow gap.
Receivables
When customers take 30, 60 or 90 days to pay, your business may have already spent money fulfilling the order. The longer the collection period, the longer your cash remains tied up.
Don't simply chase more sales. Manage the cash cycle.
Improve Collections
Clear payment terms, regular follow-ups and disciplined collections can reduce the time between sales and cash receipt.
Negotiate Supplier Terms
Where commercially possible, negotiate payment terms that better match your customer collection cycle.
Manage Inventory
Avoid tying up excessive cash in inventory that is not moving quickly.
Create a Cash Buffer
Maintaining appropriate liquidity can help the business handle timing mismatches without disrupting operations.
Plan Working Capital
Forecast upcoming receipts and payments rather than looking only at the current bank balance.
Evaluate Financing
When a genuine short-term funding gap exists, suitable working capital facilities may help bridge the timing difference, subject to eligibility and terms.
If cash goes out faster than it comes in, growth itself can create pressure.
The solution isn't always "sell more." Sometimes the business needs to improve the timing between purchases, production, sales, collections and payments.
A ₹10 lakh order can create a cash-flow gap.
A cash-flow problem can become expensive when ignored.
Ignoring receivables
Growing sales without monitoring outstanding customer payments can increase the amount of cash locked outside the business.
Overstocking
Buying more inventory than the business can efficiently sell can unnecessarily tie up working capital.
Borrowing without a plan
Finance should solve a defined cash-flow requirement, not hide an underlying operational problem.
How businesses can manage a 60-day payment gap.
Understand your cash conversion cycle
Track how long it takes to purchase inventory, sell products, collect customer payments and settle supplier obligations. This helps identify where cash remains tied up.
Set clear customer credit terms
Before extending credit, businesses should understand the customer's payment behaviour and establish clear commercial terms.
Monitor outstanding invoices
Don't wait until an invoice is severely overdue. Regular receivables tracking can help identify delayed payments earlier.
Use supplier credit intelligently
Where possible, supplier payment terms can help align cash outflows with customer collections. The terms should always be commercially sustainable for both parties.
Forecast cash flow
A cash-flow forecast can help you see upcoming payments, expected collections and potential funding gaps before they become urgent.
Consider working capital finance when appropriate
Businesses may consider suitable working capital facilities when there is a genuine timing gap between operating cash outflows and expected collections. Eligibility, cost, security and repayment terms vary by lender and product.
60-day payment terms — explained.
Don't let a successful sale become a cash-flow problem.
Good businesses don't just manage revenue. They manage the journey of money from customer to bank account. Understand your working capital cycle before the gap becomes a crisis.
Discuss Your Business Finance Requirement