Hardware scale-up: working capital peak found before it hit
A connected-device manufacturer planning a launch modelled revenue in detail and inventory as a percentage of sales.
- working capital gap identified
- $3.2Mworking capital gap identified
- cash conversion cycle
- 7 monthscash conversion cycle
- to a financed plan
- 6 weeksto a financed plan
What we found
Inventory as a percentage of revenue hid a three-month build ahead of the launch window. On the real timing the company ran out of cash two months before the first large receipt landed.
What the engagement covered
- Unit-level BOM and landed-cost build
- Inventory modelled on production and shipping lead times
- Receivable and payable terms modelled by channel
- Debt and equity financing options sized against the peak
Outcome
The gap was identified early enough to arrange a facility rather than a distressed bridge, and the launch shipped on schedule.
Client names are withheld under confidentiality. Every engagement is described with the client's agreement.
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