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? Unable to pay expenses
? May need to find a cheaper supplier
? May have to offer discounts to encourage customers on credit to pay early
? Increased costs due to borrowing funds which is interest and bank charges
? Lack of disposable funds to invest for example to purchase new technology
? Low employee morale due to pressure to increase sales revenue
? Restricted growth as there is no funds to invest in and support growing the businesses operations
? Owner may need to reduce their drawings
? May need to sell unused assets
? May need to reduce prices of goods
? Might lead to staff redundancies
? Solvency risk/closure/administration
lydiajane74 answered the question on May 31, 2018 at 12:43
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