Cash Asleep in the Building · Chapter Four

Ninety Days Is Somebody's Payroll

A day added to payables is a day someone else finances, usually the firm least able to.

Ammanuel Santa Anna · ORCID 0009-0008-3244-0306

Chapter Four of Cash Asleep in the Building: Working Capital as an Organisational Question.

Abstract

A day added to payables is a day someone else finances, usually the firm least able to. It is six in the morning on a Monday in February, and the owner of a firm that makes printed cartons is at her kitchen table with a mug of tea and a letter she has now read four times. It arrived on Friday. Her largest customer, a food company that takes about a third of everything her factory makes, is writing to all its suppliers. From the first of April its standard payment terms will move from thirty days to ninety. Suppliers who would prefer to be paid sooner may join an early-payment programme run with a bank, at a discount that will be set by the bank. The letter thanks her for her partnership. It is signed by someone whose name she does not know.

Read the PDFRead the whole bookdoi:10.5281/zenodo.23989324

Cite this chapter

Santa Anna, A. (2026). Ninety Days Is Somebody's Payroll. In Cash Asleep in the Building. Luminous Prosperity Inc. https://doi.org/10.5281/zenodo.23989324

@incollection{santaanna2026cash4,
  author    = {Santa Anna, Ammanuel},
  title     = {Ninety Days Is Somebody's Payroll},
  booktitle = {Cash Asleep in the Building},
  chapter   = {4},
  publisher = {Luminous Prosperity Inc.},
  year      = {2026},
  doi       = {10.5281/zenodo.23989324},
  url       = {https://business.hautelumiere.life/library/cash-asleep-in-the-building/04-ninety-days-is-somebodys-payroll/}
}

References

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  3. Barrot, J.-N. (2016). Trade credit and industry dynamics: Evidence from trucking firms. The Journal of Finance, 71(5), 1975–2016. https://doi.org/10.1111/jofi.12371
  4. Hofmann, E., & Kotzab, H. (2010). A supply chain-oriented approach of working capital management. Journal of Business Logistics, 31(2), 305–330. https://doi.org/10.1002/j.2158-1592.2010.tb00154.x
  5. Randall, W. S., & Farris, M. T. (2009). Supply chain financing: Using cash-to-cash variables to strengthen the supply chain. International Journal of Physical Distribution & Logistics Management, 39(8), 669–689. https://doi.org/10.1108/09600030910996314

Every chapter of Cash Asleep in the Building

  1. Chapter OneProfitable on Paper, Short on Fridaydoi:10.5281/zenodo.23989321
  2. Chapter TwoWhat the Stockroom Is Afraid Ofdoi:10.5281/zenodo.23989322
  3. Chapter ThreeThe Invoice Nobody Could Paydoi:10.5281/zenodo.23989323
  4. Chapter FourNinety Days Is Somebody's Payrolldoi:10.5281/zenodo.23989324
  5. Chapter FiveThe Payment Run Held Until Mondaydoi:10.5281/zenodo.23989325
  6. Chapter SixThe First Ninety Daysdoi:10.5281/zenodo.23989326
  7. Chapter SevenThe Field Manualdoi:10.5281/zenodo.23989327

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The licence

Free to read, share, quote, translate and teach, non-commercially, for ever, under the Luminous Library Licence 1.0. Every other right is the Author’s. Deposited on Zenodo in the Luminous Prosperity community.