Even good businesses have cash flow issues and problems - it is not just those in difficulties. However, profit does not always equal positive cash flow automatically. A company that on paper is making money may still have a difficult cash flow - just consider these examples :

• An importer who pays for good up front - by Telegraphic Transfer or Letters of Credit, but has to wait 45 days for the goods to arrive in Australia and 55-60 days to get paid by the customer - that's around 100 days of negative cash flow.
  
  
• Recruitment companies might be making money on paper but have to pay their major expense, their temporary contractors, every 7 days whilst their customers get paid in around 35 days - again negative cash flow
  
  

Whilst in the long-run all businesses need to make money to survive, there are many companies and sectors which have a similar experience to that above, and their experiences are made worse by growing pains. The more a company grows the more cash is required.

So what about your cash flow if your business is not making money.