Liquidity Problems in Microenterprises: Why Do They Occur?

Low Sales: Insufficient income to cover expenses and debts.
Poor Cash Management: Inadequate use of available income.
High Fixed Costs: High fixed costs that cannot be easily reduced.
Unpaid Receivables: Customers who do not pay on time or default on their payments.
Low Cash Reserves: Lack of savings or emergency funds.
It is crucial for microenterprises to carefully manage their finances and maintain a balance between income and expenses to avoid liquidity problems.

Liquidity problems, i.e., lack of cash to meet financial obligations, can affect microenterprises. This usually occurs for several reasons:

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