If funds don't come in time, a profitable business can go bankrupt?

[Kross]

Have you ever seen a business that is profitable go bankrupt? You are thinking if that is even possible.

In business, timing of funds availability is very important and bad timing of funds availability can make a business go bankrupt.

That's why businesses should not let their funds to be tied down somewhere.

 

[Kera]

It is a simple reality. Funds for production tied down by debts from customers and the business is already bankrupt.

 

[kit_hung]

have seen many profitable businesses die suddenly because of lack of cash flow. This happens when money tied up in customer accounts or inventory when bills are due.

 

[Trush Jodie]

Cash flow is very important for the sustainability of a business. Every business should ensure cash flow is optimal to survive.

 

[Sanjeev]

Yes, cash flow is very important for any type of business to succeed.

 

[magnus2022]

Cash flow is the soul of every business. When cash was tight down, the expenditure will continue to increase. Any profitable business survives through availability of cash. No cash, no business.

 

[eLdavis]

Yes it's very possible for a business doing well to still go bankrupt if the cash does not come in on time.

 

[Nomad]

That's very true, in fact this has happened to me a few times, not just with offline business but also with online business