Channel Checkride Consulting · Tools

First PO Cash Gap

A profitable retail order can still drain the bank account. Enter the order, the payment events and the terms. See peak cash required, how long the cash is out, and what a late payment or heavy deductions do to it.

The order

Example inputs. Replace with yours.

Units

Wholesale price per unit

Product cost per unit (FOB)

Inbound freight, duty, insurance per unit

Receiving, prep and outbound freight per unit

Supplier deposit, % of product cost

Timeline, in days

Deposit to production balance

Departure to warehouse receipt

Receipt to retailer shipment

Shipment to retailer check in

Retailer payment terms

Late payment downside

Leakage and cost of cash

Early pay discount

Expected deductions

Downside deductions

Cost of capital, per year

Deductions are a share of the invoice taken at remittance. Use your own deduction history. Dispute recoveries that arrive later are not modeled.

The cash curve

Cumulative cash from day 0. The solid line is the base case. The dashed line stacks late payment and downside deductions.

Scenario	Peak cash out	Days to payment	Cost of cash	Cash after all costs

Model it with your real supplier terms and retailer remittance history. The Retail Readiness Review includes the weekly cash curve for your first order, with a late payment case and a deduction case. Request a Retail Readiness Review

Illustrative model for planning. It assumes one supplier payment pair, one retailer payment, and no financing facility. Retailer terms, remittance timing and deduction rules vary by agreement. Confirm them against your current vendor agreement and supplier portal.