Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Teaching Business

Blog

Q&A - What are the main causes of a cash flow problem?

Jim Riley

1st April 2009

Share this content:

A cash flow problem arises when a business struggles to pay its debts as they become due.

Note that a cash flow problem is not necessarily the same as experiencing a negative cash flow. A business often experiences a net cash outflow, for example when making a large payment for fixed assets or where there is a seasonal drop in demand.

However, when cash flow is consistently negative and the business uses up its cash balances, then the problems become serious.

The main causes of cash flow problems are summarised below:

Share this content:

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

You might also like

Exchange rates, and passing on the costs

29th November 2016

BUSS4 Research – It’s All About the Why, Not the What

8th October 2015

The Biz Quiz - 7 October 2015

7th October 2015

Doing Enough Studying?

6th October 2015

The Biz Quiz - 30 September 2015

30th September 2015

The VW Scandal - Deception Explained

24th September 2015

The Haka and Change Management

23rd September 2015

The Biz Quiz - 23 September 2015

23rd September 2015