... solve this problem. The company face a liquidity crisis means hat it does not enough cash to pay its debts and other expenditure. Coving this problem can use the method of accelerating cash inflows. Firs of all, the company can press debtors for earlier payments, namely reduce credit given to buyers. Usually, a discount could be offered to encourage early payments. Also the firm can issue reminder letters or make phone calls to ensure that payment is received on time. These two measures improve cash flow efficiently and get payments in and sooner. The company can use the cash the need in that period. But it may lead to long-term loss of trade that the customers may buy from another business next time. Secondly, to increase cash inflows, debt factoring is a good solution. The factor will pay about 80% of the value of an invoice at the time of sale and take ...

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