Small firms frequently run into problems when:

Question

Quizplus · Accepted Answer

Small firms can run into problems when they fail to match a term loan's payment terms with the expected cash inflows from the equipment purchased with the loan. If the loan repayment schedule does not match the firm's cash inflows from the equipment purchased, there may be a cash flow shortage that could lead to default on the loan. This is a common problem for small firms, as they may not have the cash reserves or financial sophistication to manage their debt effectively.

Small Firms Frequently Run into Problems When