Cash Flow Planning Around Stocklot Purchases
The direct answer: in this trade you pay months before you are paid. The deposit is small, the balance and freight land together, and the first sale may not come for weeks after delivery. Plan that gap deliberately or the second order will be financed by credit you did not arrange.
Part of the buyer journey: Start Small: First Business, First Lot, First Season — stage 5 of 8, with the other guides for this stage.
Map the timing, not just the amount
Write down when each payment falls due relative to the expected first sale. Deposit at order, balance before loading, freight before or on departure, duty and clearance on arrival, and settlement with your customer some time after delivery.
The gap between the last major outflow and the first material inflow is the number your business plan needs, and it is usually longer than buyers expect.
Keep the deposit small and the reserve real
A deposit is a decision cost, and a small one means a failed supplier costs you an afternoon rather than a month. Suppliers who insist on a large deposit for a new buyer are also the ones who are least likely to hold up their end later.
Keep a reserve that is entirely separate from the order budget. It covers the second order, the demurrage charge, and the lot you did not expect but should be able to buy.
Reinvest on a schedule, not on impulse
Decide in advance how much of each sale is reinvested and on what trigger. A schedule based on a fixed percentage of settled sales is more reliable than buying whenever something good appears, because the impulse version spends the reserve before the next shipment has cleared.
Keep one reserve for growth and one for problems. Conflating them is how a business that was profitable on paper ends up unable to buy the replacement for a delayed shipment.
What stocklots are available right now?
Reading is step one. Send your requirement and we will check the factory network for current options.
Buyer questions, answered
How long should cash be tied up per cycle?
Ideally a few weeks between delivery and the bulk of your sales being settled, which means the full cycle including shipping is a couple of months. If your cycle is much longer, either your prices are too low or your market is slow, and both are worth examining.
Can I use supplier credit terms?
Established buyers sometimes get them, but rarely for a first order and rarely for stocklots. The usual pattern is a deposit and a balance against inspection. Assume you pay first and choose suppliers accordingly.
What should I do if cash gets tight mid-cycle?
Sell the fastest-moving sizes harder and discount the slow ones, and delay the next purchase rather than committing capital you need for the current shipment. A delayed second order is a small cost; an unpaid balance to a supplier is a much larger one.