A business term meaning the inability of the business to pay its current obligations. There are two forms of insolvency, Equity Insolvency which is cash flow related and Balance Sheet Insolvency whereby either current assets are less than current liabilities or total assets less than total liabilities.
In small business, cash is almost always the number one issue. There is simply never enough. This is primarily attributable to growth. Growth requires both physical assets to produce more and expansion of accounts receivable. Technically […]