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PAYMENT TIMING

When money moves.
 

Payment timing is not an administrative detail.
It is a risk-allocation mechanism.

 

Payment Timing defines when money leaves control, and who finances time inside the system.

 

This constraint exists to prevent liquidity risk from being quietly transferred upstream after value has already been delivered.

The Distortion

In most supply chains, work happens first.
Payment happens later.

Net-30, Net-60, Net-90 are treated as neutral conventions,
but they function as unsecured credit provided by producers to buyers.

Time becomes leverage.

How Distortion Appears

Payment Timing distortion occurs when:

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  • goods or services are delivered before payment

  • payment delay is normalized as “standard terms”

  • suppliers finance materials, labor, and inventory

  • buyers retain liquidity without cost

  • delay is framed as cash-flow management rather than credit extraction

 

Under delay, producers act as lenders – without interest, collateral, or consent.

Structural Consequence

When payment moves late:

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  • working capital shifts upstream

  • financing costs concentrate at production

  • bargaining power collapses under liquidity pressure

  • delayed payment becomes a disciplinary tool

  • failure risk increases with every additional day

 

Time, not price, becomes the extraction vector.

Structural Position

In the My Chakchouka system, payment is anchored to value entry, not to downstream sale.

 

Money moves:

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  • before or during production

  • at defined milestones

  • independently of retail outcome

  • without reliance on future demand realization

 

Payment does not wait for narrative success.

Constraint Logic

The Payment Timing constraint enforces four rules:

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  1. No unpaid value delivery
    Work does not proceed without secured payment commitment.
     

  2. No open-ended delay
    Payment windows are bounded, explicit, and non-extendable.
     

  3. No consignment as default
    Inventory is not used as free financing.
     

  4. No liquidity asymmetry
    One party’s cash-flow optimization cannot depend on another’s exposure.

What This Prevents

Without this constraint, systems tend to:
 

  • normalize supplier financing

  • hide interest costs inside margins

  • increase insolvency risk upstream

  • reward size over discipline

  • convert time into silent extraction

 

Delayed payment rarely announces itself as abuse.
It presents as normality.

What This Enables

When payment timing is fixed:

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  • production capacity stabilizes

  • pricing remains credible

  • risk absorption becomes explicit

  • dependency pressure decreases

  • labor continuity becomes possible

 

Money regains its role as circulation, not control.

Position

This is not generosity.
This is sequence.

 

A system that moves money after value
will always collapse toward dependency.

RISK ABSORPTION

Where failure lands.

Next Constraint

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