Lack of working capital due to poor cash flow management
Stock-outs do not necessarily have to be caused by logistical problems. The company's cash flow also influences incoming and outgoing goods. If the company does not have sufficient working capital, it may not be able to pay its supplier invoices on time, which can lead to a blockage in supplies and raw materials.
Therefore, it is important for companies to operate with a certain amount of working capital to pay for orders under the conditions agreed with suppliers.
At RITMO, we offer financial solutions such as RITMO Invoice Financing designed specifically to help improve the working capital of online retailers. Using this tool, sellers can finance their inventory invoices and RITMO takes care of paying suppliers directly. This way, eCommerce entrepreneurs can buy inventory before there is a stockout without putting their company's cash flow at risk.