If you run a product-based business, you’ve likely felt the crunch.

You place a large order for stock. The cash leaves your account in a single hit. Then the waiting game begins - waiting for inventory to arrive, and waiting again for your customers to pay.

Sales may be strong on paper, but your actual bank balance tells a very different story.

Why inventory bottlenecks your cash

Inventory is one of the biggest silent killers of cash flow. Every box sitting on a shelf, or still in transit, is cash that’s locked away and unavailable to you. You can’t use it to pay your team, invest in growth, or cover unexpected costs.

It’s like stuffing your wallet with £50 notes, sealing it in a cardboard box, and leaving it in a warehouse for six weeks.

So how do you avoid this? How do you keep cash flowing, even when inventory is essential to what you sell?

Smart founders are solving this in a few practical ways.

5 ways to keep cash flowing when inventory gets in the way

1. Order smarter, not bigger

Placing smaller, more frequent orders helps reduce the amount of capital tied up in stock that hasn’t sold yet. Yes, bulk buys can lead to better pricing - but only if you can shift the product quickly.

A rolling order strategy can also help you adapt faster to changes in demand, which is crucial in fast-moving categories like food & drink, fashion, or beauty.

2. Forecast demand like a pro

Better forecasting = less guesswork. Use historical data, seasonality patterns, and sales trends to anticipate how much stock you’ll actually need.

Founders who invest time in building even a simple demand model often reduce overbuying and unlock thousands in saved capital over time.

3. Get paid before you spend

Pre-orders and customer deposits are underrated tools. They bring in cash upfront and validate demand before you commit to large orders.

Even asking wholesale customers for partial payment on confirmation can ease the pressure. Many B2B buyers expect to be asked.

4. Extend your payment terms

Your suppliers might be more flexible than you think, especially if you’ve built trust. Moving from 30 to 60-day payment terms can give you time to receive, sell, and get paid before your invoice is due.

Pro tip: Show your order history and make a case for longer terms based on reliability and volume.

5. Bridge gaps with smart financing

Sometimes supplier terms are fixed. Sometimes big wholesale customers pay late. And sometimes, even with perfect planning, there’s just not enough cash to cover the gap.

The key is to choose a financing option with terms that suit your business cycle, not one that adds stress to your cash flow.

That’s where short-term working capital support can make a real difference. When used strategically, it gives you the flexibility to manage inventory cycles, pay suppliers on time, and maintain momentum without draining your reserves.

Take Hunter & Gather, a healthy food and supplements brand. Instead of waiting for customer payments to land, they use Mimo Flex to fund supplier invoices, keeping stock flowing, relationships strong, and growth on track.

“We utilise the flex of Mimo at Hunter & Gather to support payments to suppliers, which improves our cash conversion cycle and cash flow as and when needed,” says Amy Moring, Co-Founder of Hunter & Gather. “It’s a great flexible resource to have for any FMCG brand.”

Don’t wait for a cash flow crunch

The truth is: cash flow issues don’t always come with flashing warning signs. One day you’re riding high on a record sales month, and the next you're delaying key payments or pausing growth plans.

A few smart habits, like regular forecasting, good supplier relationships, and knowing when (and how) to access support, can be the difference between a cash squeeze and a cash strategy.

If you’re struggling to negotiate supplier terms or need a cash flow buffer while stock is in transit, Mimo can help.

With flexible payment options designed for product-based businesses, Mimo helps you keep moving without putting your business under pressure.

👉 Check out how Mimo helps you manage working capital and smooth supplier payments