Manage episode 516698248 series 3602431
Amazon isn’t just an online store—it’s a cash-flow machine. Every time you click “Buy Now,” your card runs instantly, but suppliers might not get paid for 45 or even 60 days. That timing gap funds growth before a single loan is needed.
Customers pay today. Vendors wait. Prime members prepay for shipping they’ll use later. Add those together and you get what finance calls a negative cash conversion cycle—cash in before cash out. That float fuels warehouses, innovation, and expansion. Not debt. Momentum.
Small businesses can play this game ethically:
• Take deposits for custom work.
• Offer annual plans with a real perk.
• Set up auto-pay and clear payment terms.
• Align payouts with delivery, not just dates.
Profit is your scorecard, but cash timing is your oxygen. Get paid smarter, not later.
Today’s Move: Calculate your cash conversion cycle (DSO + DIO – DPO). Find one lever to shrink it by seven days this quarter.
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