Originally published in Business.com July 9, 2019
While the number of businesses filing for bankruptcy has declined since the Great Recession, there are warning signs that this trend could quickly take a turn in the wrong direction. If that happens, savvy business owners must be prepared.
This is important to be aware of because debt and cash flow ‒ more precisely, the inability to effectively manage debt and cash flow ‒ are the principal drivers of bankruptcy. If you want to understand the risk of selling your goods or services to someone on credit terms, understand the credit report first.