Tristan is the financial manager of a small company. While sales are steady, customers are taking longer to pay, and he has had increasing difficulty obtaining short-term loans to finance the day-to-day operations of the company. Tristan's company is facing a (n)

Question

Business

Krish Abbott

28 August, 16:23

Tristan is the financial manager of a small company. While sales are steady, customers are taking longer to pay, and he has had increasing difficulty obtaining short-term loans to finance the day-to-day operations of the company. Tristan's company is facing a (n)

+1

Answers (2)

Know the Answer?

Isai Crosby · Answer 1

cash-flow-problem

Explanation:

Based on the scenario being described within the question it can be said that in this specific situation Tristan's company is facing a cash-flow-problem. This is a problem that occurs when a company begins to struggle to pay off it's debts as the due dates arrive. Which can easily cause a business to shut down due to not being able to pay off these debts.

Laylah Klein · Answer 2

Cash-flow problem

Explanation:

Tristan the financial manager of a small company, experienced steady sales but customers are taking longer to pay, and he has had increasing difficulty obtaining short-term loans to finance the day-to-day operations of the company.

Hence, Tristan's company is facing a cash-flow problem.

In Business, a cash flow problem usually occurs when an individual or organization has difficulty or is struggling to obtain loans and pay its debts as they become due.