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What are the Negative Impacts of Liquidity Risk on Companies?

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Suba

Suba

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Liquidity is the ability of a business/company to expand short-term debt on time, so the higher the liquidity, the smaller the risk, investors and financial institutions often use liquidity indicators to measure and assess a business.

Liquidity risk refers to the inability of a business/company to immediately pay off short-term debts on time, which means that their liquidity is low. Liquidity risk is also an important aspect that must always be monitored by entrepreneurs so that it does not interfere with the running or operation of the business. So in your opinion, what are the negative impacts of liquidity risk on business?
 
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