Executive Summary

Packaging companies buy materials first and get paid later. That gap squeezes cash. Daylit offers two simple working capital products to help:

• PayLater: Daylit pays your supplier bill now. You pay Daylit back on a schedule up to 90 days (many teams use ~6 weekly payments ≈45 days).
  
• FundNow: Daylit advances 70%–90% of an approved customer invoice. You repay when your customer pays (or by the agreed date).

These tools shorten the cash gap, cut rush costs, and help you say “yes” to larger or faster orders.

Common Cash Problems in Packaging

• Payment timing: Brands and retailers often pay in 30–90 days. Suppliers want faster payment.
  
• Big material buys: Paperboard, corrugate, films, inks, and plates are bought in bulk and can swing in price.
  
• Project spikes: Launches and promos need tooling and labor before you see cash.
  
• Expedites: When cash is tight, you buy smaller amounts and ship fast, both hurt margin.

Where Daylit helps: at the supplier bill and at the receivable.

Packaging Company Profiles

Folding Carton Converter:

Uses PayLater for sheets and inks ($50k–$140k). Often batches multiple invoices for one launch. Plans usually finish in ~30–45 days (≈3–6 weeks); up to 90 days available.

Co-Packer for Brands:

Uses FundNow to advance 70%–90% of invoices to national retailers. Typical use is ~30–45 days (≈3–6 weeks); up to 90 days available to cover payroll and components.

Corrugated & Displays Plant:

Mixes both: PayLater to pre-buy materials and FundNow on big outbound invoices for seasonal programs.

Working Capital Solutions for Packaging

PayLater (Supplier-Side)

• What it does: Daylit pays your vendor invoice now. You repay Daylit on a schedule up to 90 days (many teams choose ~6 weekly payments ≈45 days).
  
• Good for: buying early to lock allocation or price, capturing 2/10 supplier discounts, aligning material arrivals with press time.
  
• Pricing: varies by credit and invoice. Daylit markets rates starting around ~1% for 30 days; examples in this doc sometimes use ~1.8% over ~45 days to show the math (illustrative, not quotes).
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Delay suppholier payments with PayLater    

Learn how you can pay your suppliers early, enjoy early-pay discounts and pay back up to 90 days later.                    

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FundNow (Receivable-Side)

• What it does: Get 70%–90% of an approved customer invoice right away.
  
• Repayment: when your customer pays, or by the agreed term (often up to 90 days).
  
• Good for: covering payroll and COGS while waiting on retailers, handling back-to-back launches.
  
• Pricing: varies by credit and AR quality; marketed from ~1% per 30 days. Our example below uses a ~2.5% total cost over a few weeks to illustrate the math (not a quote).
  

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Speed up cash collection with FundNow

Learn how you can get paid upfront on your sales invoices.                    

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Typical operating pattern

• Batching: Group invoices and receivables by project or PO.
  
• Deal sizes: Often $50k–$150k; smaller tickets for plates or pilot runs.
  
• Cycle time: Many deals wrap in ~30–45 days (≈3–6 weeks); up to 90 days are available.

Outcomes Packaging Businesses Achieve by Using Working Capital

• On-time production: Pre-buys reduce changeovers, idle time, and expedites.
  
• Faster cash conversion cycle: Pay suppliers early (often with a discount) and pull cash forward on AR.
  
• More capacity to sell: Take bigger or overlapping orders without waiting for old invoices to clear.

(Exact results vary by business, credit, customers, and suppliers.)

Simple ROI Examples (Illustrative)

A) PayLater for Substrates + Inks

• Invoice: $100,000
  
• Illustrative fee: ~1.8% over ~45 days → $1,800
  
• Early-pay discount captured: 2% → $2,000
  
• Net effect: +$200 before any price-increase savings.
  Plus: if pre-buying also avoids a 1.5% price hike, that’s another $1,500 kept.
  

B) FundNow on a Retailer Invoice

• Receivable: $150,000 (Net-60)
  
• Advance at 90%: $135,000 on day one
  
• Illustrative total cost over a few weeks: ~2.5% → $3,750
  
• Use of cash: keep crews and machines running for a second promo run; avoid expedites and delays.
  
• Why it pencils: the cost is usually less than the margin saved and the rush fees avoided.

(These are examples to show the math, not price quotes. Actual terms depend on your business.)

When to Use Which Working Capital Product

• Use PayLater to pre-buy materials, capture 2/10 discounts, or secure price/volume before a busy season.
  
• Use FundNow to get cash against AR when customers pay slow or when you’re scaling fast.
  
• Use both when a big PO needs upfront materials and you’ll wait for payment later.

Quick Working Capital Start Plan

1. Week 0–1: Connect AP/AR. Approve core suppliers and top customers.
   
2. Week 1: Try PayLater on two POs ($60k and $85k). Aim for a 2/10 discount. Set schedules that match the job (~30–45 days, up to 90 available).
   
3. Weeks 2–5: Run the launch. Use FundNow on two outbound invoices (~$120k and $150k) at 70%–90% advance to smooth payroll and buys.
   
4. Week 6: Customer pays. FundNow repays. PayLater finishes. Review results and scale.

Conclusion

Invoice-tied financing is a simple lever for day-to-day cash. PayLater helps you buy what you need now and repay up to 90 days later (many teams use ~6 weekly payments ≈45 days). FundNow turns approved invoices into 70%–90% cash today. Used together, they shorten your cash conversion cycle by weeks, protect margin with early-pay and pre-buys, and free up capacity to take bigger or faster orders, without waiting for customers to pay.

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Accelerate growth with working capital    

Learn how Daylit's packaging industry solutions can help you manage your cash flow.                    

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