Finance unit- improving cash flow

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A2 Business studies Mind Map on Finance unit- improving cash flow, created by jack.miers on 01/04/2014.
jack.miers
Mind Map by jack.miers, updated more than 1 year ago
jack.miers
Created by jack.miers over 10 years ago
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Resource summary

Finance unit- improving cash flow
  1. Causes of cash flow problems
    1. - Seasonal demand- over estimation of sales- over investment in fixed assets- credit sales ( cant get cash)- poor stock management
    2. Possible solutions to cash flow problems
      1. BANK OVERDRAFT-ADVANTAGES
        1. -easy to organise- flexible
          1. DISADVANTAGES
            1. -Interest rates are flexible.
              1. -more expensive in the long run
          2. SALE OF ASSETS- ADVANTAGES
            1. - can raise large sums
              1. -might not need the asset, so makes sense to sell it
              2. DISADVANTAGES
                1. -hard to sell quickly
                  1. -reduces capacity
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