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Cash Flow Issues In Business

oboloo Glossary

Cash Flow Issues In Business

Cash flow issues in business refer to problems related to the availability of funds. These can be caused by a variety of factors, such as an increase in expenses, a decrease in revenue, late payments, high levels of inventory or accounts receivable, or unplanned expenses. A business cannot operate effectively without sufficient cash on hand and when cash is unavailable, cash flow issues arise. To combat these, businesses should take steps to improve their cash flow management such as tracking income, expenses and customer payments more closely, negotiating better payment terms with suppliers, or cutting down on overhead costs.

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