Wholesale is a cash-hungry business. You pay suppliers on 30 days, carry stock for 60 and wait 90 for customers to pay. A business can be profitable on paper and still run short of cash every month-end. That is why cash flow management for wholesalers deserves its own routine.
1. set credit limits and enforce them
A credit limit only works if the system checks it before the sale, not after. Combine it with payment terms per customer and a warning (or a block) when a new order would exceed the limit.
2. watch the aged receivables every week
Aged receivables split what customers owe into current, 1–30, 31–60, 61–90 and 90+ days. Money moving into the older buckets is a warning sign long before it becomes a bad debt.
3. remind early, remind consistently
Most late payers are not refusing; they are disorganised. A polite statement sent on schedule collects more than an angry phone call sent too late. Review the list first so you never chase someone who paid yesterday.
4. manage post-dated cheques properly
In the Gulf, post-dated cheques (PDCs) are still common. Track each cheque from receipt to its date and clearance, so you know exactly what is coming into the bank and when.
5. forecast, don’t just report
A cash flow statement tells you what happened. A cash flow forecast tells you what is about to happen: today’s bank balance, plus what customers owe by due date, minus what you owe suppliers. If the line dips below zero next month, you have time to act.
6. make customer advances work for you
Project customers often pay deposits. Record them as advances and apply them to invoices later, so the deposit is never lost or double-counted.
How Square Loop helps with cash flow management for wholesalers
Square Loop checks credit limits before a sale, provides aged receivables and payables and statements of account, prepares payment reminder batches by email or WhatsApp, tracks PDCs from receipt to clearance, manages customer and vendor advances, and projects your position with a cash flow forecast in Reports & Analytics. Customers can pay online through a payment link. The AI Assistant answers “who is more than 90 days overdue?” in seconds.
Frequently asked questions
What is the best way to improve cash flow in wholesale?
Enforce credit limits, review aged receivables weekly, send reminders on schedule, and forecast cash at least a month ahead.
How is a PDC recorded in accounts?
On receipt it goes to a PDC receivable account; on the cheque date it is cleared to the bank.
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