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Problems caused by Insufficient Working Capital With the suppliers A firm with too little working capital will struggle to pay its bills on time as they would not have no money to pay off their debts which can be a big problem .It would also mean that they do not have no spare cash or change for themselves in case of any emergencies which may also resort to delaying payments to their own suppliers. It may need to borrow more money. Delaying payment also means that suppliers are not paid on time which may also reduce the credit period or refuse credit for a future order. So by them have insufficient working capital, would stop their business from functioning properly as they do not have money. With banks If the business is resorting to borrowing it will have the additional cost of interest charges as they would have bad working capital; as...

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