A distributor’s cash flow is a timing problem, not a margin problem. Money leaves on the supplier’s milestones — deposit, balance, freight and duty as each order’s documents set them — then sits in stock, then returns on the customer’s payment terms. The gap between the two sides is carried by the distributor, so it has to be mapped and managed deliberately.
Key Takeaways
- Distributor cash flow is a timing map: supplier milestones out, stock carried, customer payments in — every date set by a specific agreement.
- There are no standard payment terms in the trade; the map has to be built from your own documents.
- The gap is structural and financed by the distributor — find its deepest point and date from your own numbers.
- Levers: align project milestones, order to sell-through, stage large orders, and review ins and outs together weekly.
The Two Sides of the Map
Every distributor runs the same six timing points. What varies — completely — is the date each agreement puts on them:
| Stage | Cash direction | What sets the timing |
|---|---|---|
| Order deposit | Out | The supply agreement’s milestone schedule |
| Balance against shipment | Out | The order’s payment terms — the instruments themselves are covered in our guide to payment terms for OEM charger orders |
| Freight, duty and clearance | Out | Each shipment’s terms, confirmed in writing before dispatch |
| Stock on the shelf | Carried | How fast each line sells through, from your own sales records |
| Trade customer payment | In | The account terms you grant installers and resellers |
| Project milestone payment | In | The project contract’s stages, as the buyer defines them |
There is no standard version of any row: two distributors buying the same charger can run entirely different cash shapes, because every date belongs to a specific agreement — theirs.
Where the Gap Opens
The gap is structural: supplier milestones are tied to production and shipment, while customer payments are tied to delivery, installation or project stages. Stock sits between the two, converting slowly.
Index illustration — invented for illustration, not any company’s terms. Set a stock purchase at 100 units of value. Suppose the supplier’s milestones take 30 out at order and 70 out at shipment, the stock sells evenly across the following quarter, and customers pay a month after invoicing. At shipment the distributor is the full 100 out, nothing in; the position closes only as the quarter’s invoices are paid. The numbers are placeholders — the shape is the lesson: find your gap’s deepest point, and its date, from your own agreements.
Levers That Move the Timing
- Align project milestones to your supplier milestones. Where a project contract lets you set deposit and stage payments, set them against the out-payments they fund — openly, in the contract, not as an afterthought.
- Match shipment cadence to sell-through evidence. Ordering to fill a container is a stock decision with a cash price; ordering to your recorded sales rate keeps the carrying stage short. Range and volume discipline are covered in our guide to building a profitable charger product line.
- Stage large orders. Split deliveries so balances land against arrivals you can sell, not one balance against a season of stock.
- Review ins and outs together, weekly. A rolling week-by-week view from your agreements and order book shows the gap’s deepest point while a shipment or milestone can still move.
- Keep the terms you grant consistent with the terms you hold. Generous customer terms funded by tight supplier terms is a policy choice — make it knowingly, with the gap priced into the decision.
Terms on EVDANCE Orders
EVDANCE is a Shenzhen manufacturer founded in 2011, with its own factory, exports to more than 30 countries, private label from 100 units and a 3-year standard warranty. Orders run through the resellers and distributors program or the OEM and private-label program. Before committing stock capital, ask for the full milestone schedule in writing — deposit, balance point, each shipment’s freight and duty terms — and lay it against your customer terms on the same page. Start that conversation via contact us.
Frequently Asked Questions
What payment terms are standard in the charger trade?
There is no standard. Deposits, balance points and credit arrangements are each agreement’s own, and anyone quoting a norm is describing their last deal. The only terms that exist for your business are the ones in your supply agreement and the account terms you grant.
Should my customer terms mirror my supplier terms exactly?
They rarely can — retail, trade and project customers settle on different triggers. The discipline is knowing the size and date of the gap your actual terms create, and carrying it deliberately.
When does stock become a cash problem?
When its carrying time outruns the terms that financed it. That shows up first in your own sell-through records, which is why stock and cash reviews belong in the same meeting.
Related Reading
- Payment Terms for OEM EV Charger Orders: T/T, L/C and Deposits
- EV Charger MOQ Explained: What Sets Minimum Order Quantities
- FOB vs DDP: How to Import EV Chargers From China Without Surprises
- How Distributors Can Build a Profitable EV Charger Product Line
