Finance & Liquidity: 13-Week Cash Defense and Vendor Terms Playbook

A Dawgen RISE-360™ guide for Jamaica and the Caribbean

Cash decides speed. In the first 2–12 weeks after a hurricane, the organisations that defend runway, sequence payables, accelerate receivables, and unlock insurance/relief funds move faster—and reopen stronger. This Dawgen RISE-360™ article delivers a field-tested 13-week cash model, Tier-0/1/2 spend rules, an AR acceleration and collections plan, a vendor renegotiation playbook, and banking/covenant management tuned to Jamaica and the wider Caribbean. You also get decision thresholds, KPIs, and copy-ready templates that integrate with your Claims Dossier and Board & Audit Trail.

1) Outcomes (What “Good” Looks Like in 30 Days)

• Runway visibility: daily view of 13-week cash with scenario toggles (Base/Downside/Stress).

• Spend discipline live: Tier-0/1/2 approvals with evidence gates; exception log maintained.

• AR uplift: DSO stabilised, cash collections ≥ 90–95% of baseline on priority customers.

• AP sequencing: critical inputs paid on time; non-critical terms extended +14–45 days.

• Banking posture: undrawn lines preserved; covenant early-warning dashboard; lender brief sent.

• Insurance liquidity: claim notices filed; advance request package submitted with clean evidence.

2) RISE-360™ Alignment

• R — Readiness: cash model shell, banking contacts, covenant schedule, policy excerpts (deductibles/waiting periods), vendor rate cards, AR contact trees.

• I — Impact (0–72h): daily cash huddles; freeze Tier-2; Tier-0/1 spend via fast DoA; AR call-lists; vendor outreach; claim notices.

• S — Stabilization (Days 3–30): collections cadence; AP re-tiering; drawdown plan; advance requests; relief filings.

• E — Elevation (31–90+): resilience financing; premium credits tracked; terms institutionalised in MSAs.

3) The 13-Week Cash Model (Structure & Logic)

3.1 Model Structure (tabs / sheets)

1. Summary & Scenarios: Base / Downside (–20% sales, +10 days DSO) / Stress (–40% sales, +20 days DSO).

2. Receipts: Cash sales, Card settlements (T+1/T+2), AR collections by bucket (Current/30/60/90+).

3. Disbursements: Payroll (with welfare allowances), COGS by lead time, Repairs/Temporary Costs, Utilities/Fuel, Rent, Debt Service.

4. One-offs: Insurance advances, Relief inflows, VAT/GCT timing, Duty waivers.

5. Covenants & Levers: Minimum cash floor, DSCR, liquidity coverage, draw sequencing.

6. Assumptions: Price, volume, DSO, AP terms, claims timing, FX where relevant.

3.2 Guardrails

• Minimum Cash Floor (MCF): e.g., 4 weeks payroll + critical supplies.

• Draw Ladder: internal cash → claim advance → OD → term/relief → supplier credit.

• Evidence Sync: any Tier-0/1 outflow linked to folder path in 06_Repairs_and_Temporary_Costs/.

4) Spend Rules: Tier-0 / Tier-1 / Tier-2

Rule: Tier-2 remains frozen until MCF ≥ X weeks and claims advance received.

5) AR Acceleration: Get Cash In Fast

5.1 Prioritise by Probability & Value

• Tier-A accounts (top 20% revenue) → named owner + agreed plan in 72h.

• Ageing buckets → aim to clear Current + 30 first; set weekly promises to pay.

5.2 Five Levers

1. Pro-forma & deposits on new/critical orders.

2. Card / instant payment links for curbside/delivery.

3. Small “make-good” credits tied to immediate settlement (expiry 60–90 days).

4. Invoice re-issues with disaster terms & how to pay (QR link).

5. Escalation ladder (AR → Account Owner → CFO call).

5.3 AR Cadence (Days 1–30)

• Daily (Week 1): call sheets, dispute clearing, payment plans.

• Twice weekly (Weeks 2–4): Tier-A/B follow-ups; report: promises kept %, collected vs. plan.

• KPI: Collections / Plan ≥ 95%, DSO trend ↓.

6) AP Sequencing: Pay What Keeps You Moving

6.1 Vendor Tiers

• Tier-A (critical inputs / logistics / fuel / comms) — maintain or prepay small amounts to secure capacity.

• Tier-B (important but substitutable) — request temporary +30–45 days.

• Tier-C (non-critical) — pause/defer until MCF threshold.

6.2 Negotiation Framework (Email + Call Script)

Subject: Temporary Terms Adjustment — [Company] Hurricane Recovery Plan
Body (email):

We’re prioritising safe, rapid reopening under a board-approved recovery plan. To keep volume flowing with you as a preferred supplier, we request a temporary extension to Net [X]+30 for invoices dated [range], with weekly payment tranches. We’ll share a simple schedule and confirm receipts.
In return, we commit to: (1) evidence-backed POs, (2) weekly order visibility, (3) priority to you on resumed volumes.
Please confirm by [date] so we can lock the schedule.

Call points: capacity continuity, weekly tranches, evidence cleanliness, short end-date, future volume priority.

6.3 Tools

• AP heatmap: due vs. criticality vs. penalty risk.

• Payment ladder: Mondays fuel/logistics; Wednesdays Tier-A parts; Fridays others.

7) Banking & Covenants: Keep Headroom and Trust

7.1 Quick Wins

• Confirm undrawn limits and availability windows.

• Request temporary covenant relief or measurement deferral tied to storm event.

• Shift to interest-only for 60–90 days where possible.

7.2 Lender Brief (2 pages)

1. Situation & plan: MVO status, cash model summary, spend rules.

2. Runway & asks: headroom, relief requested (covenant pause, limit bump).

3. Evidence: SITREP cadence, Claims Dossier structure, KPI pack.

4. Reporting cadence: weekly for 4 weeks, then bi-weekly.

7.3 Watchpoints

• DSCR / Leverage near trip? Trigger early call.

• Cross-default clauses—map all facilities.

• Document draw reasons with evidence to avoid audit surprises.

8) Insurance & Relief: Convert Proof to Cash

8.1 Advance Request Package (Day 5–10)

• Cover letters per policy (PD/BI/EE).

• Evidence index: photos (geo/time-stamped), invoices, logs, SITREPs.

• BI baseline: margin schedules, sales history, run-rate reconciliation.

• Milestone plan: what the advance funds (first-fix, fuel, comms kits) + evidence gates.

8.2 Relief Programs

• Duty waivers, tax deferrals, utility credits, moratoria.

• Single tracker: programme, eligibility, deadline, owner, docs path.

9) Pricing & Terms for Customers (Cash-Positive, Trust-Safe)

• No surge pricing. Use a clearly dated recovery fee only if required; show removal date.

• Deposits on constrained SKUs; prepaid slots for Tier-A.

• Credits for missed windows—future-dated to drive repeat orders.

10) Controls & Governance (Fast but Clean)

• Approvals Matrix (Finance slice):

  • Tier-0 life-safety spend: Immediate, log within 24h.

  • Tier-1 MVO spend: Ops Lead + CFO.

  • Drawdown requests: CFO, copy CEO; evidence attached.

• Evidence by default: payment run only if PO ↔ delivery/log ↔ invoice chain is present.

• Exception log: who/what/why/when; review weekly.

11) KPIs & Decision Thresholds

• Runway (weeks) vs. MCF (floor).

• Collections vs. Plan (%), DSO trend (days).

• AP past due ($) by tier; terms gained (days).

• Debt headroom (undrawn $) & utilisation (%).

• Claims: requested vs. approved advances ($) & cycle time (days).

• Tier-0/1 spend with complete evidence (% ≥ 95%).

• Covenant heat: DSCR/Leverage buffers (bps).

Trigger actions:

• Runway < MCF + 1 week → escalate to draw ladder.

• Collections < 90% of plan (3 days) → exec call block + win-back offers.

• AP Tier-A slippage → reprioritise payment ladder same day.

12) Day-by-Day (First 10 Days)

Day 1–2

• Cash huddle; freeze Tier-2; confirm OD headroom; issue AR call-lists; file claim notices.

Day 3–4

• First collections report; vendor outreach for terms; stitch evidence links in payments.

Day 5–6

• Submit advance request package; update model with scenarios; send lender brief.

Day 7–8

• Lock AP ladder; confirm deposit rules for constrained SKUs; publish recovery fee FAQ (if used).

Day 9–10

• Reconcile BI run-rate; prioritise repair CAPEX by ROI; prepare draw schedule with evidence gates.

13) Templates (Copy-Ready)

13.1 Cash Huddle Agenda (15 minutes)

1. Opening cash, receipts/disbursements yesterday, today’s forecast.

2. Exceptions to spend rules (approve/deny).

3. Collections gaps & escalations.

4. Draw/relief/advance status.

5. Risks (runway, suppliers) & decisions.

13.2 AR Call Notes (CSV)

date, account, contact, amount_due, bucket, promise_to_pay_date, amount_promised, next_action, owner

13.3 AP Ladder (CSV)

vendor, criticality_tier, terms_current, terms_requested, due_date, tranche_dates, tranche_amounts, owner, status

13.4 Lender Brief (outline)

• Situation & plan (SITREP summary)

• 13-week cash extract (three scenarios)

• Runway & headroom; asks & rationale

• Evidence & cadence; contacts

14) Sector Nuances

Retail/Distribution: card settlement timing; cold-chain fuel; shrink controls at pop-ups.
Manufacturing: spare-parts min/max; toll manufacturing advances; QA after repairs.
Hospitality: deposits, room-block terms, simplified F&B menus; insurance liaison for habitability.
Financial Services: fee waivers; ATM fueling & comms; remote KYC; DSCR/capital ratios front-of-mind.

15) Common Failure Modes—and Fixes

• Chasing P&L over cash. → 13-week model drives decisions; cash huddle daily.

• Paying without proof. → “No photo/log, no payment” for Tier-0/1.

• Late lender call. → Brief by Day 6 with asks; avoid covenant surprises.

• AR drift. → Assign owners; promises-kept KPI; offer small credits tied to immediate payment.

• Vendor resentment. → Share schedule; pay on time; offer future volume priority.

Liquidity is a capability, not a spreadsheet. With a disciplined 13-week model, spend rules, AR/AP choreography, and evidence-gated draws, you protect runway and buy speed where it matters. Tie this to clean claims packages and lender reporting, and you convert proof into cash—accelerating recovery and funding Elevation.

Next Step!!

Let’s restore—and rise—together.
Dawgen Global’s RISE-360™ Finance & Liquidity team can deploy your 13-week cash model, negotiate terms, prepare lender briefs, and assemble advance request packs in days.

Request a proposal: [email protected]
USA: 855-354-2447
Web: https://dawgen.global

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