Causes of Cash Flow issues and Solutions

Which of the following is a cause of cash flow problems?

• Seasonal demand

• Improved trade credit management

• Sale & leaseback

• Debt factoring

What is a method of improving cash flow?

• Overtrading

• Overdraft

• Poor stock management

• Credit sales

What is a cause of cash flow problems related to inventory?

• Poor stock management

• Debt factoring

• Short term loan

• Sale & leaseback

Which of the following is a method to improve cash flow by borrowing?

• Seasonal demand

• Overdraft

• Poor management of suppliers

• Credit sales

What is a financial strategy that involves selling invoices to a third party?

• Debt factoring

• Sale & leaseback

• Overtrading

• Improved trade credit management

Which of the following is a cause of cash flow problems due to excessive business activity?

• Overtrading

• Sale of assets

• Improved trade credit management

• Debt factoring

Which of the following is a method to improve cash flow by managing payment terms with suppliers?

• Improved trade credit management

• Over investment in fixed assets

• Seasonal demand

• Credit sales

What is a cause of cash flow problems related to customer payments?

• Credit sales

• Sale & leaseback

• Debt factoring

• Short term loan

Which method of improving cash flow involves selling company invoices?

• Debt factoring

• Overtrading

• Improved trade credit management

• Credit sales

What is a method of improving cash flow by adjusting credit terms with customers?

• Improved trade credit management

• Over investment in fixed assets

• Seasonal demand

• Credit sales