Recently, in area of enterprise funds, the term CASH CRUNCH  occurs more often. It is such a condition of company, when it has such a lack of cash which begins to affect business.

CASH CRUNCH does not have to necessarily mean that a company goes into brankruptcy; it may simply mean that they need to transform non-liquid assets into cash. Companies need cash to buy equipment, pay salaries to employees, pay suppliers,...

When company overcomes CASH CRUNCH it may have problems just with paying these regular expenses. 

How can company solve CASH CRUNCH? Most companies turn to lender in order to increase the cash. The problem may be the case that borrowing on the debt may be too expensive, if company does not have positive rating. Another solution is to decide for sale of part of company with aim to increase the cash, what can be lengthy and often the sale of property is done with great loss.

The most preferred solution is to have CASH FLOW continuously monitored as to the costs as to the income.