Cash Flow, Explained for NZ Wholesalers and Suppliers
How the cash conversion cycle and working capital work, how to negotiate longer terms with your own suppliers, how to plan for seasonal peaks, and how to fund stock before a busy season without running out of cash.
Where Accounts Receivable and Accounts Payable Meet
Cash flow is where everything else on this site comes together. How fast your customers pay (your accounts receivable), how long you take to pay suppliers (your accounts payable) and how long stock sits in between decide how much of your own money is tied up in every sale. A business can be profitable and still run short of cash if that gap grows faster than its bank balance. Start with the cash conversion cycle if you're new to the numbers.
Every Cash Flow Article
The Basics
- What Is the Cash Conversion Cycle? — the formula, where to find each number in Xero, and a worked NZ example
- What Is Working Capital and How Do You Calculate It? — current assets, current liabilities and what a negative number means
- How Payment Terms Affect the Cash Conversion Cycle — Net 30, EOM and the 20th of the month following compared
Managing Cash Through the Year
- How to Negotiate Longer Payment Terms with Suppliers — when suppliers say yes, and a script to use
- Seasonal Cash Flow Strategies for NZ Wholesalers — NZ seasonal patterns by sector and a Christmas stock example
- How to Finance Inventory Before a Busy Season — six funding options compared side by side
When Customers Pay Late
- How Late Invoice Payments Affect Supplier Cash Flow
- What to Do When a Customer Pays an Invoice Late
- Invoice Factoring in New Zealand vs PaidTerms
For Business Customers
- Stock Finance guide — how buyers fund stock, materials and large supplier invoices
- How to Finance a Large Supplier Invoice in NZ — six options with dollar costs compared
- Stop Letting Cash Flow Limit Your Growth: Pay Supplier Invoices in Instalments
Related Reading
- Accounts Receivable guide — debtor days, aging reports and getting paid faster
- Accounts Payable guide — creditor days, DPO and payment runs
- Payment Terms guide — what Net 30, EOM and the 20th of the month following mean
- Trade Credit guide — how trade credit works and what it costs suppliers
Cash Flow by Industry
- Wholesalers — seasonal stock orders and retail buyers
- Building materials suppliers — large project orders on trade accounts
- Food and beverage manufacturers — short shelf lives and hospitality customers
- Agriculture supplies — spring peaks and seasonal farm income
Shorten the Gap Between Selling and Being Paid
PaidTerms pays suppliers the full invoice upfront while approved business customers repay in instalments, so large orders stop tying up your cash.
