Finance unit- improving cash flow - created from Mind Map

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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