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Liquidity Unlocked: Restructuring Payment Terms to Fuel Growth
Transforming logistics from a cash-drain into a cash-flow advantage by moving from “Pay on Departure” to Net-90 Days.
“I used to choose freight partners based on price. I chose LogicMile based on cash flow. Those extra 90 days allowed us to launch two new products.”
— CFO, Consumer Electronics
Need Better Terms?
The LogicMile Solution
We approached this as a financial engineering project:
Credit Risk Audit
We analyzed the client's sales velocity and historical payment performance to build a credit profile.
Term Restructuring
We leveraged our volume leverage to negotiate a Net-90 Day payment structure for their logistics spend.
Capital Reallocation
We advised the CFO on how to redeploy the freed-up capital into high-ROI PPC campaigns.
The Outcome
By shifting payment from Day 0 to Day 90, we effectively gave the client a $50,000 rolling credit line.
The client used this liquidity to double their ad spend, resulting in a 40% increase in Q4 revenue—growth that would have been impossible under the old payment terms.
The Challenge
A rapidly scaling e-commerce brand was facing a cash flow crunch. Their factory demanded 30% deposit, and their logistics provider demanded payment “upon departure.”
This meant their cash was tied up in inventory for 45-60 days before they could sell a single unit. This “cash trap” was preventing them from investing in marketing during their peak growth phase.