Even when your numbers look strong, cashflow can quietly hold your growth back

Practical takeaways to consider when evaluating cashflow.

In our recent webinar hosted in collaboration with Unleashed we spoke to Keth McLelland, Fractional CFO at Sapling Spirits, and Mimo’s CEO Henrik Grim, where we explored how founders and finance leaders can turn cashflow from a risk into a competitive advantage.

Henrik advised breaking your cash movements into three levers. Shortening any one of these levers frees up working capital. Shorten all three, and you can unlock breathing room to scale.

Days Payable Outstanding (DPO): Delay paying your suppliers, without burning bridges.
Inventory Turn: How fast you convert stock into sales.
Days Sales Outstanding (DSO): How long it takes to collect from customers.

One size doesn’t fit all when it comes to cashflow constraints. Keth highlighted that sometimes it’s better to accept a slightly higher cost per unit if it releases cash that’s otherwise locked into inventory.

For startups - paying suppliers upfront is often inevitable. The trick: buy sparingly, negotiate hard, and carry just what you need.
For scaling businesses - you can begin to push supplier terms outward and enforce stricter customer credit rules.

Negotiate smartly at both ends of the cycle

Henrik highlighted that cashflow isn’t just about when you pay - it’s about how long you wait to get paid.

With suppliers: If you build a reputation for reliability, you can move from upfront payments toward 30, 60 or 90-day terms. See how you can do this with Mimo Flex.
With customers: Be selective. Demand upfront payments from small or new buyers. For larger accounts, have firm credit policies - don’t allow unpaid invoices to stack up.

Keith recommended embedding clear SOPs (Standard Operating Procedures) so the sales team never surprises finance. Even in lean teams, the rules should be explicit: when credit is allowed, when it’s not.

She also suggests running regular credit control meetings across finance, operations, and sales to stay aligned and prevent hidden exposures.

Finance as a strategy, not a safety net

As volume or growth spikes, external capital often becomes necessary - but the timing and structure make all the difference.

Early stage: equity (friends/family, angel) dominates.
Growth stage: options broaden - factoring, inventory finance, unsecured lines, etc.

A few best practices to keep in mind:

Match the financing to your CCC. Don’t use long-term debt to handle a 60-day cash gap.
Understand fully loaded costs (fees, compounding interest, hidden charges).

Cultivate lender relationships early - when you’re not desperate.

“Understand your cash conversion cycle today, know the levers you can pull, and then track your progress over time.” - Henrik Grim, CEO & Founder of Mimo

To summarise

Short-term hacks matter, but real strength comes from culture and discipline. Henrik and Keith both emphasised:

Demand planning stops you from over-ordering and tying up cash.
Clear slow-moving SKUs with promos or product bundles.
In today’s global supply climate, holding just the right amount of stock matters more than ever.
Measure your CCC regularly.
Demystify cashflow across your whole team - it’s not solely a finance problem.
Iterate continually - refine supplier terms, credit rules, inventory strategies as you evolve.

Cashflow is the foundation. If you can break it into levers, negotiate smartly, and embed habits that protect your liquidity, you transform what many see as a constraint into a strategic advantage.

In our recent webinar hosted in collaboration with Unleashed we spoke to Keth McLelland, Fractional CFO at Sapling Spirits, and Mimo’s CEO Henrik Grim, where we explored how founders and finance leaders can turn cashflow from a risk into a competitive advantage.

Henrik advised breaking your cash movements into three levers. Shortening any one of these levers frees up working capital. Shorten all three, and you can unlock breathing room to scale.

Days Payable Outstanding (DPO): Delay paying your suppliers, without burning bridges.
Inventory Turn: How fast you convert stock into sales.
Days Sales Outstanding (DSO): How long it takes to collect from customers.

One size doesn’t fit all when it comes to cashflow constraints. Keth highlighted that sometimes it’s better to accept a slightly higher cost per unit if it releases cash that’s otherwise locked into inventory.

For startups - paying suppliers upfront is often inevitable. The trick: buy sparingly, negotiate hard, and carry just what you need.
For scaling businesses - you can begin to push supplier terms outward and enforce stricter customer credit rules.

Negotiate smartly at both ends of the cycle

Henrik highlighted that cashflow isn’t just about when you pay - it’s about how long you wait to get paid.

With suppliers: If you build a reputation for reliability, you can move from upfront payments toward 30, 60 or 90-day terms. See how you can do this with Mimo Flex.
With customers: Be selective. Demand upfront payments from small or new buyers. For larger accounts, have firm credit policies - don’t allow unpaid invoices to stack up.

Keith recommended embedding clear SOPs (Standard Operating Procedures) so the sales team never surprises finance. Even in lean teams, the rules should be explicit: when credit is allowed, when it’s not.

She also suggests running regular credit control meetings across finance, operations, and sales to stay aligned and prevent hidden exposures.

Finance as a strategy, not a safety net

As volume or growth spikes, external capital often becomes necessary - but the timing and structure make all the difference.

Early stage: equity (friends/family, angel) dominates.
Growth stage: options broaden - factoring, inventory finance, unsecured lines, etc.

A few best practices to keep in mind:

Match the financing to your CCC. Don’t use long-term debt to handle a 60-day cash gap.
Understand fully loaded costs (fees, compounding interest, hidden charges).

Cultivate lender relationships early - when you’re not desperate.

“Understand your cash conversion cycle today, know the levers you can pull, and then track your progress over time.” - Henrik Grim, CEO & Founder of Mimo

To summarise

Short-term hacks matter, but real strength comes from culture and discipline. Henrik and Keith both emphasised:

Demand planning stops you from over-ordering and tying up cash.
Clear slow-moving SKUs with promos or product bundles.
In today’s global supply climate, holding just the right amount of stock matters more than ever.
Measure your CCC regularly.
Demystify cashflow across your whole team - it’s not solely a finance problem.
Iterate continually - refine supplier terms, credit rules, inventory strategies as you evolve.

Cashflow is the foundation. If you can break it into levers, negotiate smartly, and embed habits that protect your liquidity, you transform what many see as a constraint into a strategic advantage.

In our recent webinar hosted in collaboration with Unleashed we spoke to Keth McLelland, Fractional CFO at Sapling Spirits, and Mimo’s CEO Henrik Grim, where we explored how founders and finance leaders can turn cashflow from a risk into a competitive advantage.

Henrik advised breaking your cash movements into three levers. Shortening any one of these levers frees up working capital. Shorten all three, and you can unlock breathing room to scale.

Days Payable Outstanding (DPO): Delay paying your suppliers, without burning bridges.
Inventory Turn: How fast you convert stock into sales.
Days Sales Outstanding (DSO): How long it takes to collect from customers.

One size doesn’t fit all when it comes to cashflow constraints. Keth highlighted that sometimes it’s better to accept a slightly higher cost per unit if it releases cash that’s otherwise locked into inventory.

For startups - paying suppliers upfront is often inevitable. The trick: buy sparingly, negotiate hard, and carry just what you need.
For scaling businesses - you can begin to push supplier terms outward and enforce stricter customer credit rules.

Negotiate smartly at both ends of the cycle

Henrik highlighted that cashflow isn’t just about when you pay - it’s about how long you wait to get paid.

With suppliers: If you build a reputation for reliability, you can move from upfront payments toward 30, 60 or 90-day terms. See how you can do this with Mimo Flex.
With customers: Be selective. Demand upfront payments from small or new buyers. For larger accounts, have firm credit policies - don’t allow unpaid invoices to stack up.

Keith recommended embedding clear SOPs (Standard Operating Procedures) so the sales team never surprises finance. Even in lean teams, the rules should be explicit: when credit is allowed, when it’s not.

She also suggests running regular credit control meetings across finance, operations, and sales to stay aligned and prevent hidden exposures.

Finance as a strategy, not a safety net

As volume or growth spikes, external capital often becomes necessary - but the timing and structure make all the difference.

Early stage: equity (friends/family, angel) dominates.
Growth stage: options broaden - factoring, inventory finance, unsecured lines, etc.

A few best practices to keep in mind:

Match the financing to your CCC. Don’t use long-term debt to handle a 60-day cash gap.
Understand fully loaded costs (fees, compounding interest, hidden charges).

Cultivate lender relationships early - when you’re not desperate.

“Understand your cash conversion cycle today, know the levers you can pull, and then track your progress over time.” - Henrik Grim, CEO & Founder of Mimo

To summarise

Short-term hacks matter, but real strength comes from culture and discipline. Henrik and Keith both emphasised:

Demand planning stops you from over-ordering and tying up cash.
Clear slow-moving SKUs with promos or product bundles.
In today’s global supply climate, holding just the right amount of stock matters more than ever.
Measure your CCC regularly.
Demystify cashflow across your whole team - it’s not solely a finance problem.
Iterate continually - refine supplier terms, credit rules, inventory strategies as you evolve.

Cashflow is the foundation. If you can break it into levers, negotiate smartly, and embed habits that protect your liquidity, you transform what many see as a constraint into a strategic advantage.