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Business Cash Flow Problems

oboloo Glossary

Business Cash Flow Problems

Business cash flow problems are defined as a lack of sufficient funds to meet day-to-day obligations. Business owners can find themselves in this situation due to a variety of reasons, such as not charging enough for their services, costly overhead, insufficient capital and tight payment terms. This can have serious consequences if left unaddressed, as delayed payments and high interest rates can lead to potential liquidation. Unfortunately, business cash flow problems don’t only hurt the business owner–they can also affect suppliers and customers, making it important to stay on top of your finances and make proactive choices to fix them before they become unmanageable.

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