Poor cash flow has always been the biggest cause of failure for small businesses. Often this can be due to a too high ‘debtors days ratio’, the ratio that measures how quickly cash is being collected from debtors, those individuals or companies that owe debt to you (the creditor), as a result of borrowing or issuing bonds.
This has been an age old problem and can be caused by a number of seemingly small issues, such as slow payment of invoices from customers.
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