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Cash FlowJan 20264 min read

The DPO Conversation Every CFO Postpones

By Vivek Kashyap · Founder, Indusynq

Extending DPO from 30 to 60 days is the most-avoided conversation in Indian industrial finance. CFOs tell me their suppliers 'won't take it'. In practice, they will — if you offer a supply-chain-finance window in exchange. The bank funds the supplier at their credit rating; you pay the bank at 60 days. Everyone is better off.

The mistake is treating DPO as a zero-sum negotiation. It is not. Reframed as a strategic terms shift with a finance instrument attached, it becomes a supplier retention lever, not a supplier stress test.

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