IGCSE, A Level Business Student Forum

[KN] A business can arrange an overdraft with its bank to handle short-term cash flow problems caused by rapid growth.
[APP] For instance, a furniture company might use an overdraft to pay suppliers while waiting for customers to pay for large orders.
[AN] This can arrange a good amount of finance within short time allowing it to meet expenses like wages and bills which helps the business continue operating smoothly without interruptions or damaging its reputation.

kn]business can solve cash flow problem caused by rapid growth by taking short term bank loan or bank overdraft
app]for example, a compony has urgently ordered raw material and is yet to pay wages. In this situation they can take bank overdraft.
an]this will allow the business to operate smoothly, which will save the business brand image from harm, customers wont get any complain, making the customer loyal and hence leading to profit maximization.

[KN]: A business could solve a potential cash flow crisis caused by rapid growth by arranging a short term loan from the bank or an overdraft.
[APP]: For example, if a coffee shop is growing rapidly and is facing cash flow crisis and isn't able to pay wages of the employees and bills the owner can take a short term loan to cover up immediate expenses.
[AN]: Thus, this provides the cash needed to pay bills quickly while waiting for customer's to pay, which also allows the business to operate smoothly, preventing the business's brand image from harm, and lead to customer loyalty which would lead to long term growth of business.

[KN] Business can solve a cash flow problem by arranging short term finance/short loan.
[APP] For instance, a manufacturing company could arrange an overdraft in advance in order to pay for raw materials and wages while waiting for payments from retailers.
[AN] This provides the business with immediate access to cash which leads to smoother daily operations and helps the firm avoid payment delays which builds stronger supplier relationships and maintains trust which leads to more reliable deliveries with discounts and stable production hence leads to lowering cost of production.