The situation
A fictional textile exporter starts with ₹10 lakh. It must pay suppliers ₹18 lakh before it collects ₹30 lakh. Its lender offers a ₹12 lakh bridge with a total financing cost of ₹1 lakh. Customers would bring forward ₹15 lakh of invoices for a ₹2 lakh discount.
The decision
Both funding choices are reliable and arrive in time. Which keeps cash nonnegative and leaves more cash after collection?