The cash cycle measures how long it takes for your brewery to turn cash spent on ingredients, labor, and packaging into cash back in the bank.
The longer the cycle, the more money you need just to operate. Understanding, and actively managing, your cash cycle is one of the fastest and most effective ways to improve cash flow.
- What the cash cycle is (in plain English)
The cash cycle tracks the time between when you pay for expenses and when you collect cash from customers - Why the cash cycle matters to cash flow
A long cash cycle means more cash is tied up in things like inventory and receivables, increasing the need for debt or owner cash injections even if the brewery is profitable. - Where breweries typically get stuck
Overproduction, slow-moving SKUs, delayed distributor payments, and paying vendors faster than necessary all stretch the cash cycle and strain liquidity. - How to actively shorten the cash cycle
Improve inventory turnover, tighten credit terms and collections, prioritize faster-paying sales channels, and strategically manage vendor payment timing to free up cash and reduce risk.
Do this next…
- Watch the short explainer video below – How to Shorten the Cash Cycle (and keep more money in the bank)
- Get the Brewery Profit Brief – weekly tips to run a more profitable brewery
