Revenue spikes create a paradox — growth arrives before the cash to support it does. When order volume jumps suddenly, businesses must spend on inventory, production, and fulfillment well before additional revenue is collected, widening the gap between costs and incoming cash. Larger contracts compound the problem with net-30 or net-60 payment terms that can leave businesses covering high upfront costs for months before seeing a return. Seasonal businesses face a different version of the same challenge when demand arrives earlier or stronger than planned, requiring immediate scaling without the cash reserves to support it. Hiring to meet real demand is always a sound decision, but onboarding costs land before new staff generate revenue — forcing many owners to turn down orders instead. Fast-moving inventory creates urgency, too, since waiting until shelves are empty to reorder almost guarantees stockouts. Working capital funding bridges each of these gaps, giving businesses the cash to meet demand when it arrives rather than after it passes.
source: https://cardiff.co/learn/5-signs-your-revenue-spike-calls-for-working-capital-funding/
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