cash flow

• Cash flow - movement of money in and out of a business
• Causes of cash flow problems

  • Overtrading
  • Allowing too much trade credit
  • Poor credit control
  • Inaccurate cash flow forecast
• cash flow objectives

  • reduce borrowings
  • minimise interest cost
  • reduce amounts held in inventories
• Sale & lease back - selling fixed asset then leasing it from the new owner