The cash timing problem is structural, not a sign of a bad business.
A wholesale distributor extending net-30 terms to 12 new retail accounts is doing everything right. The problem is that their suppliers still need to be paid on 14-day terms. That $180,000 gap is not a credit problem. It is a timing problem. Kanmon solves it.
For Vendors
Get paid for work already done.
Outstanding invoices represent completed work. Kanmon advances against eligible receivables so vendors don’t wait 30 to 90 days.
For Buyers
Keep the supplier relationship healthy.
Kanmon pays the supplier on time. The buyer repays Kanmon on extended terms. The supplier relationship stays healthy.
Business Owner // in practice
A wholesale distributor extended net-30 terms to 12 new retail accounts without waiting on their own receivables.
Challenge
Working capital gap was $180,000 in outstanding invoices while suppliers demanded 14-day terms.
What happened
Through the software they already used to manage orders and invoices, the business selected individual invoices for advance. Kanmon funded up to 90% of eligible invoice value within 24 hours. Repayment was automatic when buyers paid.
Finally being able to say yes to buyers without doing mental math about whether we can cover payroll.
Owner – Regional Wholesale Distributor