Case Segment #4

In order to be prepared to handle potential cash flow problems, Cassie realizes that she should make a list of the things that could happen to cause such problems.

List and explain some of the things that can cause a business of her size to experience cash flow problems. (Hint: You may want to think of some of the things that could be unique to a sign business, but since the purpose of this case is not to learn about sign businesses, also consider general cash flow problems that can manifest in any type of small to medium sized business.)

Six months after making this list, Cassie is experiencing some of these problems. Therefore, she needs to find some additional working capital.

List the potential sources for acquiring this working capital, and the pros and cons of each alternative.