Insufficient Cash is a term that refers to a business’s inability to pay for its financial obligations as they come due. This can be caused by a number of factors, including: inadequate cash flow, lack of access to credit, mismanagement of funds, or expenditures that exceed revenue. Without sufficient cash reserves, a business may struggle to pay bills, honor contracts, cover debts, and maintain operations. If these conditions persist, the business could end up in deep financial trouble. It is important for businesses to closely monitor their cash flow and maintain sufficient buffers in order to avoid this situation.