Solar EPCs run out of working capital because they pay suppliers at or before shipment, while clients pay on milestones 60 to 90 days later. That timing gap, not thin margins, is what stalls projects. It is closed by moving funding onto the order itself, through PO Finance, invoice discounting or vendor payment programs, rather than absorbing it on the balance sheet.
”- The cash gap is a timing problem: money goes out to suppliers before it comes in from clients.
- It hits profitable, growing EPCs hardest, because every new project deepens the gap.
- Order-attached financing funds the purchase order or invoice directly, so growth stops consuming your reserves.
- Most EPCs use a mix: PO Finance to buy, invoice discounting to unlock receivables, vendor programs to stretch supplier terms.
The gap between paying suppliers and getting paid
Here is the mechanic that catches out even well-run EPCs. Suppliers, especially overseas ones, want payment at or before shipment. Clients pay against milestones, commissioning, grid connection, performance, often 60 to 90 days after you have already committed the cash. In between, the EPC funds the entire order out of its own pocket.
On a single small project that is manageable. But an EPC does not run one project, it runs a pipeline. Each new order opens a fresh gap before the last one has closed. The reserves that felt comfortable at three projects are underwater at eight. This is why the businesses that stall for cash are frequently the ones growing fastest, not the ones struggling for work.
Why cutting costs does not fix it
The instinct is to treat a cash shortage as a margin problem: negotiate suppliers harder, trim overhead. But the gap is not caused by margin, it is caused by timing. You can be making a healthy margin on every project and still run dry, because profit is recognised on completion while cash goes out on order.
The only structural fixes are to change the timing of the cash flows themselves: get paid earlier, pay later, or have someone else bridge the middle. That is exactly what order-attached financing does.
- Underwrites the transaction, scales with your order book
- Decision in ~48h, no equity dilution
- Funds up to 100% so the build keeps moving
- Preserves balance-sheet borrowing capacity
- Treats a timing problem as a margin problem
- Squeezes suppliers and erodes priority
- Caps growth at your current reserves
- Gap reopens on the very next project
Fund the order, not the company
Traditional working-capital loans underwrite your balance sheet, slow, dilutive to your borrowing capacity, and capped by your own assets. Order-attached financing underwrites the transaction instead.
PO Finance, for the buy
PO Finance funds the accepted purchase order up front, up to 100% of order value with a 48-hour decision. The BOM ships without touching your reserves, and you repay from the sale proceeds on your cycle. This is the primary tool for closing the pay-suppliers-first gap.
Trade Finance and LC, for imports
When you are importing, Trade Finance & LC opens a letter of credit with the INR rate locked at issuance, so the gap does not get worse from a currency swing between order and delivery.
Turn receivables and supplier terms into runway
Two more levers free up cash without raising equity or a term loan.
- Invoice Discounting advances up to 100% of an unpaid receivable, converting that 60-90 day wait into cash in days, with no collateral beyond the invoice itself. Use it once the work is delivered but the client has not paid.
- Vendor Payment Programs let you pay suppliers immediately, protecting priority status and pricing, while you settle on 30/60/90-day terms. This stretches your side of the cycle without straining the relationship.
Used together, these three products attack the gap from both ends, earlier inflows and later outflows, with the order financing bridging the middle.
What this does to the schedule
With the order funded, procurement stops waiting on the client milestone. Verified quotes come back in 24-48 hours, financing is approved in 48 hours, suppliers are paid in 15 days, and the build keeps moving. The pipeline stops throttling itself. Run your next order through the financing options to see what is fundable, or create an account to start.
Close the cash gap with order-attached financing
VyaparCred attaches financing to the order itself, so growth stops draining your reserves. Whether the gap is before shipment, after invoicing, or in supplier terms, there is a matched product with a 48-hour decision.
PO Finance funds the order up to 100% before you ship, repaid from sale proceeds on your cycle.
Invoice Discounting converts a 60-90 day receivable into cash in days, no collateral beyond the invoice.
Vendor Payment Programs pay suppliers now while you settle on 30/60/90-day terms.