cash flow problems and solutions

CASH FLOW PROBLEMS:-Tying up too much cash in stock.- Allowing customers too much credit.- Customers not paying within agreed credit.-Borrowing too much finance at high interest repayments.- Owners taking too many drawings.- Purchase of capital items (e.g. equipment).- Low sales.CASH FLOW SOLUTIONS:- Offer discounts and promotions to encourage cash sales and reduce stock levels.encourage overdue customers to pay their billsarrange credit with suppliersseek another source of finance (e.g find a partner)owners draw lesspurchase cheaper productspurchase capital items on hire purchase

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