Alexandoy
VIP Contributor
For a businessman it is important to maintain a good cash flow. That means the business has cash in bank or cash on hand for the needed expenses. For a selling business there should be ample cash for the purchase of new supplies especially when the stocks are already thinning on the shelves. Usually the purchase of supplies is one transaction that is burden to the cash flow so there should always be a regular schedule for such so that the funds will be available without affecting the cash flow. When there is a tight cash flow the tendency is to borrow money which is not a good practice.