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Finance unit- improving cash flow - created from Mind Map

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A2 Business studies Apunte sobre Finance unit- improving cash flow - created from Mind Map, creado por jack.miers el 03/04/2014.
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Causes of cash flow problems- Seasonal demand- over estimation of sales- over investment in fixed assets- credit sales ( cant get cash)- poor stock management

Possible solutions to cash flow problems BANK OVERDRAFT-ADVANTAGES SALE OF ASSETS- ADVANTAGES -easy to organise- flexible DISADVANTAGES -Interest rates are flexible. -more expensive in the long run - can raise large sums DISADVANTAGES -might not need the asset, so makes sense to sell it -hard to sell quickly -reduces capacity

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