overtrading
Overtrade
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
overtrading
a situation in which a firm expands its production and sales without making sufficient provision for additional funds to finance the extra WORKING CAPITAL needed. Where this happens the firm will run into LIQUIDITY problems and can find itself unable to find the cash to pay suppliers or wages. See also WORKING-CAPITAL RATIO, CURRENT RATIO, CASH FLOW.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
overtrading
a situation where a FIRM expands its production and sales without making sufficient provision for additional funds to finance the extra WORKING CAPITAL needed. Where this happens, the firm will run into LIQUIDITY problems and can find itself unable to find the cash to pay suppliers or wages. See CASH FLOW.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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