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High Sales Zero Cash Explained
How can a business have massive sales but absolutely no money left? Imagine a shop that sells five hundred dollars of goods every single day. It looks profitable on paper, but here is the catch: cash flow. To sell those goods, you had to buy inventory upfront with your own cash. Meanwhile, big clients are buying on credit and won't pay for thirty days. You still have to pay rent, staff, and bills today, even if the money isn't there.
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How can a business have massive sales but absolutely no money left? Imagine a shop that sells five hundred dollars of goods every single day. It looks profitable on paper, but here is the catch: cash flow. To sell those goods, you had to buy inventory upfront with your own cash. Meanwhile, big clients are buying on credit and won't pay for thirty days. You still have to pay rent, staff, and bills today, even if the money isn't there.
