Cash-in-advance flip

Definition

The point where an overdue balance turns every further delivery into cash up front.

Why It Matters

Inventory at cost prices the stock on the shelf. This is the terms on which the next load arrives, and the guide's own escrow term already leans on the credit rules by name without saying what they are. California switches a supplier to payment in advance where a retailer has not paid in full by the thirtieth day from delivery, and it stays on until everything more than thirty days old is paid. Ohio does not allow the credit at all: domestic beer, brewed beverages and wine are cash only at every tier. So a buyer modeling thirty-day payables may be modeling a business that does not exist, and the difference lands in working capital. The trap after that is California's oldest-balance rule, which applies your money to the oldest invoices first.