Answer :
Final answer:
Paying bills early can hurt cash flow, while increasing sales and offering credit only to low-risk borrowers can help cash flow.
Explanation:
Paying your bills early can hurt your cash flow as it decreases the amount of cash you have on hand for other expenses. By paying bills early, you might face a cash flow crunch, especially if unexpected expenses arise.
On the other hand, increasing your sales can help to improve cash flow as more revenue is generated. This can provide a positive impact on the cash flow of a business by bringing in more money.
Offering credit only to low-risk borrowers can also hurt cash flow if these customers default on payments, leading to a decrease in cash flow from unpaid invoices.
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