How much working capital does a roastery need?

Enough to cover green stock, packaging and several weeks of fixed costs while customers pay. A 13-week forecast shows your lowest point; keep a buffer above it.

What payment terms should I give cafes?

Common terms are 14 or 30 days from invoice. Shorter terms, direct debit and a credit limit protect cash. See the cafe account terms guide.

Cash flow in a roastery: green coffee, credit terms and growth

You pay for green coffee weeks or months before a cafe pays you for the roasted result. Here is where the cash goes, the forecast that shows it early, and the levers that bring it back.

7 min read Updated 9 October 2026

A roastery's cash cycle runs the wrong way round for a growing business. Green coffee is usually paid for on order or on short terms, sits in stock, gets roasted and packed, is delivered, and is paid for by a cafe two to five weeks later. The faster you grow, the more cash sits in that cycle.

The cash cycle

Worked example

Where cash waits in a roastery

Pay for green coffee
Green in storage, weeks to months
Roast, pack and hold roasted stock
Deliver and invoice
Wait for payment, often 14 to 30 days
Cash back in the bank

Add the days at each step and you have the number of days your money is tied up. Shorten any step and you free cash without selling another kilo.

The levers

Lever	What to do
Green stock	Buy smaller and more often where you can; use spot lots in UK warehouses rather than forward contracts while volume is small.
Supplier terms	Ask for 30-day terms once you have a payment record; spread large purchases.
Customer terms	Set terms in writing, invoice on delivery, chase on day one of being overdue, stop supply at an agreed limit.
Direct debit or card on file	Collect wholesale payments automatically on the due date.
Retail and subscriptions	Paid up front: grow these alongside wholesale to balance the cycle.
Equipment	Finance or lease large items rather than paying cash, if the cost of finance is acceptable.

A 13-week cash forecast

Profit forecasts are monthly; cash problems arrive by the week. A rolling 13-week forecast, updated every Monday, is the simplest early warning a roastery can keep.

Columns in the forecast

Opening bank balance
Receipts: each wholesale invoice by its expected payment week, retail and subscription takings
Payments: green coffee in the week you pay, packaging orders, wages, rent, rates, VAT and PAYE dates, loan and lease payments
Closing balance each week, and the lowest point in the 13 weeks
A minimum balance you will not go below

Seasonal peaks

Christmas gifting and subscription peaks need extra green, packaging and labour paid for before the money arrives. Plan the purchase dates into the forecast in early autumn, and agree supplier terms before the busy weeks.

VAT timing

Most coffee is zero-rated, but equipment, some merchandise and drinks are standard-rated. A roastery that mostly sells zero-rated coffee while paying VAT on equipment and packaging can be in a repayment position, which helps cash. Your quarter dates still belong in the forecast. See VAT on coffee.

Where Roastnet helps

Questions roasters ask

How much working capital does a roastery need?: Enough to cover green stock, packaging and several weeks of fixed costs while customers pay. A 13-week forecast shows your lowest point; keep a buffer above it.
What payment terms should I give cafes?: Common terms are 14 or 30 days from invoice. Shorter terms, direct debit and a credit limit protect cash. See the cafe account terms guide.

Official sources

GOV.UK: Late commercial payments: charging interest and debt recovery

Rules change. These sources were checked on 9 October 2026; always confirm the current position with the body that publishes them before you act.