Marc Obadia is the founder of Rock Drive Business Capital, where he writes about business financing, working capital and cash-flow management for small-business owners.
Why Profitable Small Businesses Still Run Into Cash-Flow Problems
A business can be profitable on paper and still struggle to pay its bills on time. For many small business owners, that sounds contradictory. If sales are strong and the company is making money, why should there be a shortage of cash? The answer is that profit and cash flow measure two different …