Liquidity issues refer to a company’s inability to meet its short-term financial obligations. This could be due to a lack of cash, a decrease in reserves, or an increase in debt payments. These liquidity problems can have a huge impact on the company’s operations and can even lead to bankruptcy if they are not addressed quickly. To ensure a company’s financial health, it is important to identify potential liquidity issues before they become serious problems. Signs of liquidity issues include high inventory levels, late receivables, and difficulty refinancing existing debts.