What Are Common Challenges in Cash Flow Management?
Even with robust systems in place, leaders may face specific challenges in managing cash flow:
Seasonal Variations: Fluctuations in demand can lead to periods of cash shortfall or excess. Delayed Receivables: Late payments from customers can disrupt cash flow and operational efficiency. Unexpected Expenses: Unforeseen costs such as repairs, legal fees, or regulatory fines can strain liquidity. Over-leveraging: Excessive debt can lead to high-interest payments, reducing available cash.