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Created by jack.miers
over 10 years ago
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Copied to Note by jack.miers
over 10 years ago
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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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Finance unit- improving cash flow
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