Which of the following is NOT a cause of cash flow issues?

High demand typically indicates that a business is experiencing strong sales and customer interest in its products or services. When demand is high, it often translates into increased revenue, which generally helps improve cash flow rather than create issues. Businesses can sell more products or services, leading to a quicker inflow of cash.

In contrast, low sales can lead to cash flow problems as fewer goods or services sold means less income. Similarly, uncollected payments from customers can significantly impact a business’s cash flow, as the expected income remains in accounts receivable rather than being available for operational expenses. High operating costs can also drain cash reserves, making it difficult for a business to maintain a healthy cash flow situation as expenses outpace revenue.