On this page
01. Stock is cash02. Time your buying03. Payout timing04. Buffer05. A weekly cash check06. Stock turns: the number that matters07. Ways to protect working capital08. When to borrow09. A typical scenario10. Common mistakes11. Quick checklist12. Frequently asked questions
Prioritise fast-moving stock, buy for confirmed orders where possible, track payout timing and keep a small cash buffer.
Key takeaways
- Fast-moving stock protects cash.
- Know when payouts arrive.
- Keep a buffer.
01Stock is cash
A shelf full of slow items hides money you cannot spend. Track how long each line takes to sell.
02Time your buying
Buy just enough for what sells, and top up after orders are awarded where your supplier allows.
03Payout timing
You are paid after goods are received and checked. Plan for that gap.
04Buffer
Keep enough cash for transport, packing and one restock.
05A weekly cash check
- List cash in hand, M-Pesa and bank balances.
- List payouts you expect this week.
- List bills due: rent, transport, suppliers.
- Decide how much stock you can afford to buy.
- Keep a small reserve untouched.
06Stock turns: the number that matters
Divide the cost of what you sold in a month by the average value of your stock. A higher number means your money is moving faster. Lines that take months to sell are lowering the figure. Cut them, discount them or stop reordering until they clear.
07Ways to protect working capital
- Buy fast movers more often in smaller quantities.
- Negotiate supplier terms once you have a record.
- Avoid tying money in items that sell once a quarter.
- Chase unpaid amounts early.
- Separate business and personal cash.
08When to borrow
Borrowing can help when you have confirmed demand and a clear way to repay, for example funding stock for repeat orders. It is dangerous when you are covering losses or buying slow stock. Do the numbers first, and never borrow against money you do not yet have.
09A typical scenario
A vendor trims slow lines, buys more of three fast sellers and never runs out of cash before payout.
Illustrative example based on common cases, not a named vendor.
10Common mistakes
- Overstocking.
- Ignoring slow lines.
- No buffer.
11Quick checklist
- Track turnover.
- Trim slow lines.
- Keep buffer.
12Frequently asked questions
Should I borrow to stock up?
Only if margins and demand are clear.
How big should my buffer be?
Enough for one restock and a month of costs.
What about credit from my supplier?
Use it carefully.
How do I track turnover?
Keep a simple sheet per product.
This guide describes how supplying through Qyvea works at the time of writing. The Vendor Terms and the Sell on Qyvea page are the final word on fees, returns and payment. Examples marked illustrative are not real vendors or earnings.
