ESL Podcast 668 – Having Cash Flow Problems

Kylie: I’ve just crunched the numbers and we’re not going to be able to meet payroll next month because of cash flow problems.

Miguel: That can’t be. The cash flow projections from last month showed that we’d be fine.

Kylie: We didn’t anticipate a shortfall in income this month and didn’t set aside enough cash to hedge against a cash flow problem.

Miguel: What can we do? We need a stopgap solution now.

Kylie: Well, we could try to extend our line of credit at the bank.

Miguel: We’re already overextended at the bank. I don’t want to push our luck.

Kylie: The other option is to hold off on paying our suppliers and hope that our income goes up next month, as predicted.

Miguel: Do you really think we can hold them off for that long?

Kylie: I’ll have a talk with our biggest suppliers and give them assurances that they’ll get paid. Let’s just hope they’re not having cash flow problems of their own!

Script by Dr. Lucy Tse

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