Seasonal Cash Peaks Before Lunar New Year
Why November feels tight even when December orders look promising—and how to stagger supplier payments.
For food producers, gift wholesalers, and retail shops across Taiwan, Lunar New Year is both the best sales window and the tightest cash month of the year. The pattern repeats: large material and packaging orders in October or November, partial customer deposits in December, full payment often arriving only after delivery in January.
The November squeeze
Owners focus on December revenue projections. Cash problems appear earlier, when flour, packaging, and overtime labour deposits leave the account in November while corporate buyers still process purchase orders.
One pastry wholesaler in Taichung paid three suppliers in full by mid-November each year, then borrowed short-term for rent. Corporate gift orders confirmed in writing still paid on net-30 from delivery—usually mid-January. The business was profitable; the calendar was hostile.
Staggering without losing suppliers
Splitting orders is the first lever. Can one supplier deliver half now and half in three weeks? Can packaging wait until bulk dough orders are confirmed? Not every vendor agrees, but long-term suppliers often prefer partial payment to losing the order entirely.
The second lever is tying the second payment to a specific receivable. If three corporate clients owe deposits on December 5, schedule the second supplier run for December 6—not November 15. This sounds obvious written down; in busy season it requires a visible calendar shared with whoever places orders.
Staff and overtime
Temporary staff for festival production add a payroll line easy to underestimate. Include overtime estimates in the same thirteen-week view as materials. Shops that close for holiday still pay skeleton staff or security; mark those weeks even if sales drop to zero.
A minimal preparation list
- List festival orders already confirmed in writing, with payment terms per buyer
- Mark supplier payment due dates for stock already ordered
- Add overtime and temporary wage estimates by week
- Keep an untouched buffer—many owners use a fixed NT$ amount rather than a percentage
We publish this note each autumn because the same questions appear in intake forms. If your November bank balance already looks uncomfortable while December sales look strong, a supplier payment session may be enough; if you have never mapped the weeks at all, start with a full diagnostic.