[daanlo]

In the case of food retailers you also need to consider the time on shelf. To take the coffee example. If any average shop buys 4 cases of coffee (24 bags) and on average sells 2 bags per week, then the last bags will sell after 12 weeks. On avg. it will be 6 weeks (42 days). Product will also spend 1-2 days in transit and might not be unpacked on the floor until 1-2 working days later (so maybe 2-3 days). We can assume payments take 1 day to process. So 46-48 days in total. So 50 day payment terms means they are more or less cash flow neutral. Numbers are made up, but roughly align with my experience of selling other durable food to grocery retailers.