About 70% of all business failures occur because of
poor cash flow management. Firms
which are profitable find it impossible to continue trading because they are
unable to meet their current debts. Often
cash is tied up in stocks which canít be used immediately to pay their
that are starting up should produce a cash flow forecast.
This will hopefully identify any periods where shortfalls in cash will
occur, allowing the firm to arrange a short-term loan or overdraft.
is constantly moving in and out of a business.
diagram on the below shows the effect on a firmís cash flow of taking a