If you believe the statisticians half of all new enterprises will fail. What is a fact is that one of the main reasons for business failure is poor or no cash flow. Even those businesses that manage to navigate their first few years and stay solvent will find it difficult to grow without external capital.
From a capital perspective, businesses seek financing that is appropriate to their asset conversion cycles. The conversion of assets into cash. It is the timing of the conversion of assets which drives the financing decisions that all businesses face. As an example, consider a company whose sales are increasing (both seasonal or long-term trend). What