Supplier Payment Terms: 30 Days vs 7 Days = SGD 500K Working Capital Swing
Restaurant purchases SGD 800K/month from suppliers. Payment terms: 7 days = must pay SGD 800K in cash within week of delivery (tight). Renegotiate to 30 days = only need SGD 800K/month (3-4 suppliers on rotation, not all at once). Cash freed: SGD 1.6M working capital at any time. Growth opportunity: reinvest SGD 200K/month into marketing (payback from extra working capital).
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