The Cash Machine pattern refers to businesses that operate on a negative cash conversion cycle. As indicated by the formula below, the cash conversion cycle is the time during which a business spends and collects cash. More precisely, it refers to the average storage time for inventory, which includes raw materials, work-in-process, finished products, and customer and supplier payment terms that are past due:

Cash conversion cycle = inventory conversion period

+ Receivables conversion period
- Payables conversion period

To maintain a negative cash conversion cycle, a business's revenue must exceed the amount owed to suppliers for purchased goods. Customers are rarely aware of this type of business model. However, the implications for the business are far-reaching. The pattern generates additional liquidity, which can be used for a variety of purposes, including debt repayment and new investment. This enables the business to reduce its interest payments or accelerate growth. Two critical levers to consider when attempting to achieve a negative cash conversion cycle are ensuring that the business obtains generous payment terms from suppliers and ensuring that customers pay promptly. Additionally, a build-to-order strategy or a high stock turnover rate can assist a business in achieving a negative cash conversion cycle by minimizing the time goods are held in inventory.

When and how to apply Cash Machine:

 This pattern is ideal for a business that manufactures to order or has negotiated favorable payment terms with suppliers. The Cash Machine will provide liquidity for you. You receive payment for services rendered as soon as possible, but pay your suppliers as late as possible. Meanwhile, any liquidity is entirely yours to do with as you please. This scenario is only possible if your offerings, such as an online build-to-order process, have a high perceived value for your customers. Dell's success was built on the Cash Machine model. You may wish to combine the Cash Machine and Subscription patterns, as customers make an initial payment but receive products and services later.

Well-known companies that use this pattern are PayPal and Dollar Shave Club.