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 |