MOTENZA BUSINESS ADVISOR / CASH-CYCLE DESIGN

Working Capital Architecture

Put the cash already inside your business to better use.

Slow collections, inventory decisions, and mismatched payment terms can keep cash tied up longer than expected. Map how money moves through your operation and build a practical plan for managing payment timing and working capital.

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Cash-cycle analysis · Scenario planning · Operating playbook

This is an operational advisory service, not a working-capital loan. Cash release and other financial improvements are not guaranteed.

Understand where your cash gets tied up.

A closer look at customer payments, inventory, and supplier terms can help clarify your working capital needs.

Paying suppliers before customers pay you?

See how the timing of incoming and outgoing payments affects day-to-day cash availability.

Cash tied up in inventory?

Review purchasing and stock levels alongside sales demand and upcoming payments.

Payment terms no longer fit your business?

Review customer and supplier terms together to identify timing mismatches.

Useful for product and service businesses with recurring receipts and commitments. For businesses without inventory, the analysis focuses on receivables, billing, deposits, and payment timing.

Review the processes that affect cash availability.

Billing and collections.

Examine when invoices are issued, when customers are expected to pay, and where follow-up or terms create avoidable delays.

Inventory and purchasing.

Where relevant, review the cash implications of stock levels, ordering decisions, and inventory turnover using the available records.

Supplier payment terms.

Map committed outflows and identify terms or scheduling issues that may be appropriate to discuss with counterparties.

Decision ownership.

Define who monitors the cycle, who can approve changes, and which metrics should be reviewed regularly.

The plan does not authorize late payments, unilateral changes to contracts, or withholding statutory obligations. Any change to customer or supplier terms requires appropriate agreement and review.

Map the cycle. Test the options. Build the operating rules.

01 — Establish the baseline.

Review supplied receivables, payables, sales, purchasing, and inventory information as relevant to your business.

02 — Identify the timing gaps.

Make the movement of cash visible and distinguish operational bottlenecks from data-quality issues.

03 — Model practical changes.

Test assumptions about collections, inventory, and agreed payment terms. Show the mechanics, trade-offs, and dependencies of each scenario.

04 — Turn the model into a routine.

Deliver a cash-cycle playbook and measurement plan. The implementation package adds support for selected operating changes and follow-up reviews.

SEE THE THINKING

A shorter cycle can release cash without creating new sales.

Consider a hypothetical inventory-based business with $3.65 million in annual credit sales and $2.19 million in annual cost of goods sold. Using a 365-day convention, that equals $10,000 of daily credit sales and $6,000 of daily cost of goods sold.

Scenario mechanics

Collect receivables 10 days sooner: 10 × $10,000 = $100,000.
Reduce inventory holding by 5 days: 5 × $6,000 = $30,000.
Extend supplier payment timing by 10 days under agreed terms: 10 × $6,000 = $60,000.

Total modeled cash release

$190,000.

Takeaway

This is a modeled reduction in cash tied up in the operating cycle—not $190,000 of additional revenue, annual profit, or guaranteed recurring savings. The opportunity depends on the business's records, counterparties, inventory needs, and the feasibility of the changes.

Illustrative example — not a client result or forecast. Assumes stable activity, usable average balances, unchanged sales and cost rates, and successful implementation of all three changes. Actual analysis may use more detailed purchasing and seasonal data.

Illustrative example — not a client result or forecast.

CASH CONVERSION CYCLE

Collect45daysDSO

Hold inventory40daysDIO

Pay suppliers30daysDPO

45 + 40 − 30

55 daysBaseline cash conversion cycle

View the example figures

Cash-cycle component	Baseline	Illustrative scenario
Days sales outstanding: time to collect receivables	45 days	35 days
Days inventory outstanding: time inventory is held	40 days	35 days
Days payable outstanding: time before supplier payment	30 days	40 days
Cash conversion cycle	55 days	30 days

A practical blueprint for how cash should move.

Cash-cycle map.

A readable baseline showing the timing of receipts, inventory where relevant, and supplier payments.

Scenario workbook.

An editable model with the agreed inputs, formulas, and assumptions used to test potential changes.

Operating playbook.

Defined priorities for billing, collections, purchasing, approvals, and payment scheduling within the agreed scope.

Measurement plan.

A compact set of indicators and responsibilities for monitoring whether the changes are working as intended.

Prioritized operating actions.

The playbook connects identified timing issues with practical actions for your team to consider. Changes remain subject to management approval and existing agreements.

Assumptions and dependencies.

The scenario workbook makes expected payment timing, inventory needs, and counterparty agreements explicit. Modeled cash release depends on those assumptions holding.

DEFINED SCOPE. TRANSPARENT PRICING.

Choose the level of support you need.

Cash Cycle Blueprint

$2,500Project fee

Best for

Owners who need an operating model and can implement the changes with their existing team.

One business entity and up to 12 months of usable operating information.
Review of receivables, payables, and inventory summaries where relevant.
A baseline cash-cycle map and metric definitions appropriate to the business.
Two agreed improvement scenarios with explicit assumptions.
A prioritized operating playbook and measurement plan.
One 60-minute findings and model walkthrough.
One consolidated written clarification round.

Your team implements any changes and obtains required counterparty approvals.

Request Cash Cycle Blueprint

From design to implementation

Implementation Partnership

$4,500Project fee

Best for

Owners who want help turning the cash-cycle model into a working operating routine.

Everything in Cash Cycle Blueprint, plus:

Support for two agreed workstreams, such as billing cadence and purchasing-approval rules.
Up to six hours of implementation support across those workstreams, separate from review sessions.
Three 30-minute progress reviews over a 45-day follow-through period.
Two model refreshes using updated information supplied by your team.
Templates for the agreed billing, follow-up, or approval routines.
A final handover covering results observed, remaining dependencies, and next priorities.

Why choose this package?

The additional $2,000 adds a defined implementation window, process materials, progress reviews, and model updates. It is the stronger fit when the challenge is changing daily routines—not just identifying the opportunity.

Contract drafting, supplier negotiations, collections services, inventory implementation systems, and custom software integrations are not included. Your team remains responsible for approvals and execution.

Request Implementation Partnership

The initial blueprint is generally planned for approximately 10–15 business days after the agreed information is received. The implementation package then includes the defined 45-day follow-through period. The written engagement confirms the schedule.

Clear scope. Clear pricing. No payment at submission.

The prices shown apply to the defined package scope. We confirm business fit, data availability, deliverables, timing, and the final fee in a written engagement before work begins. You will not be charged by submitting a request. Additional entities, complex records, specialist work, or expanded scope may require a separate quote, disclosed before you decide.

Third-party fees and taxes, where applicable, are not included. No recurring subscription is created by submitting this form.

QUESTIONS, ANSWERED

Before we begin.

Working capital depends on when money comes in and when payments are due. The review looks at customer receipts, inventory where relevant, and supplier commitments to identify timing gaps.

Look at the whole cash cycle.

When cash comes in: Consider invoice dates, customer terms, deposits, and actual payment patterns.
Where cash is tied up: Identify overdue receivables or stock held before a sale.
When cash goes out: Map supplier terms and operating commitments that your team must meet.

A modeled timing improvement is not additional profit. Any change to payment terms needs the appropriate counterparty agreement.

Is this a loan or financing product?

No. This service examines the movement of cash already inside the operating cycle. Any financing discussion is separate and subject to its own terms and requirements.

Will the modeled cash release become additional profit?

The modeled cash release changes when cash is available; it is not additional revenue or profit. Any separate effects on earnings are assessed separately.

Can you just extend our supplier payments?

No. Changes to payment terms require agreement with the counterparty. We do not recommend breaching contracts or using statutory payments as a source of working capital.

Does this work for a service business without inventory?

Yes, where the scope fits. The analysis focuses on invoicing, deposits, collections, operating commitments, and payment timing. Inventory metrics are omitted when they do not apply.

Do you implement software or accounting integrations?

Not within these packages. The implementation scope covers selected operating routines and materials. Software development or complex system configuration requires a separate scope.

How is this different from the 90-day turnaround program?

Working Capital Architecture focuses on the design of the cash cycle. The 90-day program focuses on near-term cash visibility, priorities, and a regular financial review process. You do not need to purchase both to use either service.

START WITH SCOPE, NOT A PAYMENT

Discuss your working capital priorities.

Tell us how customers pay, how you manage purchases, and where timing creates pressure. We will review the appropriate scope before any engagement begins.

01 / Share your question02 / Confirm the right scope03 / Agree in writing

Tell us how payment timing or inventory affects your available cash. A brief description is enough to start the conversation; no cash-cycle calculation is needed.

Describe how cash moves today

Customer payment patterns: Explain how you invoice, whether you collect deposits, and where receipts tend to arrive late.
Inventory or purchasing needs: Describe whether stock or advance purchases tie up cash. For a service business, explain its operating commitments instead.
The change you want to examine: Identify the billing, collection, or payment-planning routine you want to understand better.

Use a business-level summary only—no account numbers or sensitive records. Scope, required information, and the fee are confirmed in writing before work starts.

Your advisory request

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Package preferenceWhere do payment timing or inventory create cash pressure?

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Service: Working Capital Architecture
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All advisory services

Business-purpose advisory only. Availability is subject to fit, data quality, service capacity, and a written engagement. No financing approval, cost savings, recovery, profitability improvement, acquisition outcome, or other financial result is guaranteed. Illustrative examples are not client results. Any specialist or third-party service is subject to its own scope and terms.