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HPC Blog

How poor cash flow kills profitable businesses (and how to prevent it)

By Jennifer Huang • December 21, 2015 at 8:00 AM • Cash Flow, Virtual CFO

Profitable businesses don’t fail, right?


There are many reasons why even profitable enterprises don’t survive. One of the top reasons—shown by years of studies—is that they simply run out of money. They can’t pay the bills on time or make payroll, so they go out of business.

How is this possible?

Typically, running out of cash is the result of either:

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