Cash Is the Constraint in Every Scenario
Under any December 11 outcome, cash timing decides how much flexibility you have. Building on the Q1 budget, cash floor, and financing content discussed elsewhere in this publication, a stress test of receivables and payables shows where cash could tighten first.
Stress the Receivables
Ask what happens if your largest customers pay ten, twenty, or thirty days later than usual. Identify which accounts account for most of your outstanding balances and how concentrated that risk is.
Stress the Payables
Review upcoming supplier payments and terms. Identify which ones are fixed, which can be negotiated, and which suppliers would tighten terms if conditions change.
Run Three Cases
- A base case using current payment behavior
- A slower-collections case
- A combined case with slower collections and tighter supplier terms
Decide Actions in Advance
For each case, list the steps you would take, such as accelerating collection, delaying discretionary spend, or drawing on credit, and who would approve them.
Keep Lenders Informed
Share your plan early with your bank or lender, since confidence is easier to maintain before a squeeze than during one.
Low Gravity Hemp reviews cash scenarios weekly. Contact us to compare approaches.
