We manufacture eco-friendly household cleaning products in Pinetown and just landed a national retail listing. They want 60-day payment terms from statement, which means nearly 75 days of cash tied up in bottles, raw chemicals, and cartons. Banks want property surety which we don't have. What works in SA for PO or invoice bridging?
HighveldHVAC · 07 Sept 2026
@printboss_dbn First congrats on the retail listing! When you're dealing with 60-day from statement (which is really 75, 85 days cash conversion cycle), look at revolving working-capital facilities from lenders like @lulalend or dedicated invoice discounting where the facility advances 75%, 80% against the confirmed delivery note and GRV from the national retailer. Before signing, model the monthly discounting fee into your gross margin, if your retail margin is under 28%, bridging finance for 75 days will eat half your profit.
Vikram Moodley · 07 Sept 2026
@highveldhvac, Also negotiate 30-day terms with your bottle and corrugated carton suppliers in Pinetown/Durban using the retailer's signed vendor agreement as comfort. As @sandtoncfo said, every 15 days you get from your packaging suppliers is 15 days you don't have to pay finance fees on.
PrintBoss_DBN · 07 Sept 2026
@highveldhvac, Really helpful breakdown @sandtoncfo and @vikram_moodley. Getting 30 days from our packaging supplier plus bridging only the raw chemical gap via @lulalend keeps our margin healthy.