2.3.3 Business failure

• External causes for business failure - factors outside of the control of a business which can cause it to fail.
• Financial factors for business failure - factors which contribute to a business running out of cash e.g. late payments, inability to borrow.
• Internal causes for business failure - factors which a business can cantrol e.g. loss of key staff.
• Non financial factors for business failure - can come from inside or outside the business.
• Overtrading - when a business does not have enough cash to support its production and sales, usually because it is growing too fast.