More sales. Why is the bank balance low?

A business can record growing sales while struggling to pay suppliers. Revenue and available cash are not the same.

The sale happened. Cash comes later

In a hypothetical example, a store makes $10,000 in sales, but $6,000 will arrive next month. Rent is due this week.

Inventory can trap your cash

Money spent on products sits on shelves until they sell. Buying too much can leave less cash for everyday expenses.

A simple working capital check

Compare operating current assets with operating current liabilities. Then map when each payment actually arrives.

Timing matters more than you think

A supplier may request payment before customers settle their invoices. That gap can cause a cash shortage.

More revenue, more pressure?

Fast growth may require more inventory, staff and deliveries upfront. Higher sales alone do not prove healthy cash flow.

Check these three numbers first

Track cash on hand, customer payment dates and upcoming bills. Open the full guide for a working-capital example.