You just landed a massive new account. Orders are pouring in. So why does it feel like you’re about to run out of cash?

This is the paradox that haunts wholesale distributors: growth can actually kill your business if you’re not managing cash flow properly. You’re buying inventory before you get paid, extending terms to win customers, and watching your bank account shrink even as your revenue climbs.

The feast-or-famine cycle typically stems from three root causes: misaligned payment terms between your vendors and your customers, inadequate credit line management, and inventory that ties up working capital longer than it should.

A Fractional CFO will build a 13-week rolling cash flow forecast — a tool that the best-run distribution companies use religiously. This forecast lets you see cash crunches before they arrive, so you can act proactively rather than scrambling for emergency financing.

Strategic solutions include tightening receivables, renegotiating vendor payment terms, optimizing your reorder points to reduce carrying costs, and structuring your revolving credit line to work harder for you. None of these require a massive capital outlay — they require financial expertise applied consistently. 

Stop reacting to cash flow surprises. A Fractional CFO can build the forecasting systems your distribution business needs. Contact us to learn more.