Cash flow is the oxygen small firms need for survival. When cash flows, small firms can pay bills, buy more stock, and continue trading profitably.

When cash doesn’t flow, a small firm becomes like a man running up a long steep hill whilst carrying a briefcase. He can keep going for a while, but he will have to slow and then eventually stop to gasp for air. He won’t be able to go on. The same thing happens to businesses suffering from poor cash flow.