Business cash flow

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  • Cash flow
    • The amount of money coming in and out of the business
    • Insolvency: is when they business hasn't got enough money to pay its suppliers or workers
      • That's why drawing up a cash forecast chart is important because it identifies where the business will need an over draft.
    • Reducing cash outflows: Delays payments of bills, securing better trade credit terms of financing
    • Increasing cash inflow: chasing debtors and selling assets or securing an over draft.

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