1.Cash-flow problems may be caused by:

• Sudden fluctuations in demand
• Debtors delaying payments
  
• Paying suppliers in advance
• An increase in credit rather than cash sales
  
• Mismanagement of variable costs such as wages labour and materials (stock level)

2.Cash flow may be improved by:

• Taking in new investors
• Borrowing
  
• Selling assets
• Increasing sales
• Debt factoring
• Improving credit control