Guide · demo-live · official
Cash Flow and Inventory Risk
Last checked: · UPDATE 049
Direct answer
Cash flow measures when credits become available, not how much your inventory might eventually be worth. The official description ties rising rent to the risk that an expensive item is confiscated, fails inspection or remains unsold.
Separate three balances
Track cash on hand, committed obligations and inventory cost separately. Production adds more timing: ingredients are bought now, processing happens later, and a buyer may arrive later still. A profitable completed batch and an affordable next payment are related but different questions.
| Available cash | Credits already held |
|---|---|
| Committed cash | Rent plus planned operating requirements |
| Speculative value | Uncompleted future sales |
Use a downside test before expansion
Subtract the next obligation and a planned purchase from cash without assuming its resale. If the remainder is negative, the plan relies on a future event. Reduce batch size, wait for a completed sale or keep a larger reserve. This is an editorial planning method rather than a claim about hidden penalties.