Finance unit- improving cash flow - created from Mind Map

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

align_clippings_on_this_page_please

Finance unit- improving cash flow