Factory Cash Flow: The Gap Between Raw Materials and Customer Payment
16 August 2025·Updated Jan 2026·10 min read·GuideIntermediate
Key Takeaways
The manufacturing cash cycle — pay for raw materials, produce, wait for finished goods, dispatch, wait for payment — can span 60–120 days. Managing this cycle is the most important financial discipline for SMB factory owners, yet most manage it reactively rather than proactively.
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More in factory-manufacturing-operations
→ Raw Materials Running Out Mid-Production: Fixing Your Factory's Inventory Blind Spots→ Bill of Materials for SMB Factories: Getting Your BOM Right Saves Thousands→ Batch Tracking and Quality Control: Tracing Defects Before They Reach Customers→ Calculating Yield Loss: The Hidden Cost Eating Your Factory Margin
📊 By The Numbers
34%11%£1£1.34£50,000
Key Takeaways
- The manufacturing cash cycle — pay for raw materials, produce, wait for finished goods, dispatch, wait for payment — can span 60–120 days.
- Managing this cycle is the most important financial discipline for SMB factory owners, yet most manage it reactively rather than proactively.
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