# Cash Flow for Nairobi Suppliers: How to Stay Liquid While You Grow

Many suppliers run out of cash while their shelves are full. Cash flow is a habit, not a bank balance.

**Quick answer:** Prioritise fast-moving stock, buy for confirmed orders where possible, track payout timing and keep a small cash buffer.

## Stock is cash

A shelf full of slow items hides money you cannot spend. Track how long each line takes to sell.

## Time your buying

Buy just enough for what sells, and top up after orders are awarded where your supplier allows.

## Payout timing

You are paid after goods are received and checked. Plan for that gap.

## Buffer

Keep enough cash for transport, packing and one restock.

## A 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.

## Stock 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.

## Ways 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.

## When 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.

## A 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.

## Common mistakes

Overstocking. Ignoring slow lines. No buffer.

## Quick checklist

Track turnover. Trim slow lines. Keep buffer.

## FAQ

**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.

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