One way of addressing the solvency problems associated with overtrading is to try and pay creditors more quickly

Question

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Overtrading occurs when a company takes on more work or orders than it can handle with its current resources and cash flow, which can lead to cash flow problems and insolvency. Paying creditors more quickly would put additional strain on the company's cash flow and exacerbate the situation. Instead, the company should focus on reducing expenses, increasing sales or revenue, and improving its cash management practices to address overtrading.

One Way of Addressing the Solvency Problems Associated with Overtrading