Working Capital • Browser Mode • 10-15 min

Supply Chain Finance

Students can change revenue scale, collection timing, supplier count, and payment terms to see how buyer-led financing programs release cash and improve operating flexibility.

Runs fully in browser Continuous slider inputs Immediate recalculation

What this demo is about

Supply chain finance changes when cash moves between buyers, suppliers, and financiers, affecting liquidity and economics for each side.

Learning objectives

  • Interpret the cash-flow effect of payment-term changes.
  • Relate revenue scale to financing benefit magnitude.
  • Explain why ROI must be weighed against counterparty and relationship risk.

How to use the demo

Step 1

Adjust the four operating inputs using the sliders below.

Step 2

Watch how cash release, savings, and ROI update instantly.

Step 3

Explain whether the program benefits justify the financing structure.

Input Variables

120M
45 days
120 suppliers
75 days
Each input changes the working-capital cycle. Longer payable terms can release cash, but they also affect suppliers and financing arrangements.

Output and Interpretation

$9,863K
Cash-flow release
2.5%
Discount rate
$247K
Annual savings
0.2%
ROI

What outputs mean

  • Cash-flow release: liquidity freed by timing changes.
  • Annual savings: simplified funding-cost benefit.

What to notice

  • Revenue scale amplifies the same timing decision.
  • Term extensions matter more when receivables are slow.

What to challenge

  • Supplier stress and bargaining power are not modeled here.
  • Real implementations also add legal and platform costs.