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First, let’s take a look at how a company’s bankruptcy happens mathematically. Bankruptcy risk is the probability that your company will be unable to meet its payment obligations within a certain period, usually within 1 year.

As a small business owner, your biggest question is: Will I always stay small? Will I spend the years only surviving on my own efforts? When will I be able to scale my cash flow? When will I rise to the next level?

There’s a sales frenzy sweeping across the globe. Companies are competing fiercely in sales figures. While this sales obsession might be a priority for large enterprises, it’s highly likely to lead SMEs down a path to bankruptcy.

Before delving into the significance of cash flow management for your business growth, let’s highlight what a prudent entrepreneur should understand from the terms used in this sentence.