Cash Flow Problems
- Created by: Benjhigg
- Created on: 16-04-15 09:46
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- Cash Flow Problems
- Excessive borrowing
- Interest
- Exccessive trade credit
- Bills and wages need paying before receiving income from sales
- Excessive stocks
- Need to control outflow of cash, perishable materials
- Over trading
- Expanding too quickly
- Time delay in making market presence
- Receiving income from sales
- External factors
- Action of competitors cause loss of sales
- Changes in interest rates
- Change in exchange rates
- Weather
- Changes in legislation
- Pollution laws
- Increase in the minimum wage
- Restrictions
- Poor planning
- Over-optimistic
- Seasonal factors
- Excessive borrowing
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