I'm about to pull the trigger on an SBA loan and keep re-tooling my cash flow analysis. Can someone do a sanity check on a few assumptions here?
1. % of sales made on credit (to customers/distributors) = 95
2. Time to receive credit card funds from customers = 5 days
3. Time to receive payment from distributor = 30
4. Time allowed to pay suppliers = 30
I am wondering if suppliers will let me delay payment like that or will require cash up front... im also curious if a distributor would call me crazy for asking for cash up front...
Cheers!
Brian
1. % of sales made on credit (to customers/distributors) = 95
2. Time to receive credit card funds from customers = 5 days
3. Time to receive payment from distributor = 30
4. Time allowed to pay suppliers = 30
I am wondering if suppliers will let me delay payment like that or will require cash up front... im also curious if a distributor would call me crazy for asking for cash up front...
Cheers!
Brian
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