Rethink cash flow for growth

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Smart Cash Flow Strategies for DTC Brands

Most DTC brands offer customers payment flexibility through Buy Now, Pay Later (BNPL) services like Affirm and Klarna. However, few apply the same concept to their own operations. Instead, they front-load expenses—paying for inventory, ads, and overhead long before revenue comes in.

This creates a cash flow crunch that slows growth. But what if you could flip the script and extend your payment terms while generating sales?

The Cash Flow Shift

Instead of depleting cash reserves upfront, we focused on:

✔️ Identifying major cash outflows (inventory, advertising, and operations)
✔️ Negotiating extended payment terms with suppliers
✔️ Leveraging financial tools to delay payments without high fees

The result? A negative cash conversion cycle—where customers pay before suppliers do.

How We Secured Better Payment Terms

Rather than just negotiating price, we asked suppliers for two quotes:

1️⃣ Standard payment terms (50% deposit, 50% on shipment)
2️⃣ Extended terms (50% deposit, 50% due in 30+ days)

For a small percentage increase (about 3%), we gained a full month to generate sales before paying the balance. If 30% of inventory sells within that period, the increased margin far outweighs the extra cost.

Tools That Extend Payment Cycles

🔹 Plastiq - Allows payments via credit card to vendors who only accept ACH, providing extra float.
🔹 Settle - Offers extended payment terms of 30-120 days, reducing financial risk on new product launches.
🔹 Meta’s Credit Line - Enables net-30 ad billing, allowing sales to roll in before ad payments are due.

The Takeaway
DTC brands often struggle with cash flow, but strategic payment extensions can change the game. By negotiating better terms, using financial tools, and selling before payments are due, brands can grow faster—without constantly running on fumes.

🖥️ Microsoft’s Open-Source AI Model

Microsoft has introduced Phi-4-mini, a compact yet powerful 3.8B parameter open-source AI model. The best part? You can run it entirely offline on your Windows, macOS, or Linux system—for free.

Here’s how you can get started:

Set Up Phi-4-Mini on Your Device

1️⃣ Download the Model: Head over to Hugging Face and search for "Phi-4-mini instruct" to get the latest version.

2️⃣ Install the Required Software: Depending on your system, you’ll need a local LLM runner like LM Studio or Ollama for smooth performance.

3️⃣ Load the Model: Once installed, open your LLM runner and select Phi-4-mini. Click "Load Model," and it will initialize, ready for conversation.

4️⃣ Start Chatting Locally: Now, you can ask questions, generate content, or even use it for coding assistance—all without an internet connection.

The Takeaway
Phi-4-mini proves that bigger isn’t always better in AI. Whether you're a developer, researcher, or AI enthusiast, this model lets you experience cutting-edge AI locally, without cloud dependencies.

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