Hard Costs of Negative Cash Flow

• Lost sales 
  
• Reduced growth 
• Interest charges from vendors for late payments 
  
• Missed vendor discounts for quick payment and volume purchases 
  
• Penalties for late tax payments 
  
• Interest charges for late tax payments 
  
• Loss of vendor credit terms (e.g. Net 30 days) 
  
• Reduction of vendor credit limit 
  
• Bank overdraft charges 
  
• Other bank deposit account charges 
  
• Bad dept expense 
  

Soft Costs of Negative Cash Flow 

• Delayed sales delivery 
  
• Harassing vendor calls for payments 
  
• Loss of customer goodwill 
  
• Lack of confidence 
  
• Negative psychological factors 
  
• Loss of employees (e.g. Sales Staff, etc.)
  
• Check book worries 
• Too much time spent on cash flow issues 
  
• Less time for customer service and business development 
  
• Reduced profits
  
• Possibility of business failure 
• Reduced creativity
• Reduced production and marketing of products and services