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Improving liquidity (CREDIT (Reduce trade credit to cutomers, Trade…
Improving liquidity
CREDIT
Reduce trade credit to cutomers
Trade debtors are customers who buy on credit
It may build sales but damages liquidity
Increase your credit to suppliers
Discounts for prompt payment
CAPACITY
Spending too much on fixed assets is bad for short term
Lease and rent
Reduce held stock, JIT
Sell under used assets
OVERTRADING
Expanding too quickly
Get finances first, then expand
Postpone planned investments
Raising share capital
Bulk buying means lower prices
Selling debts to debt factors
Improve record keeping and planning