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cash squeeze

 

Definitions from the Web

Cash Squeeze

Description

A cash squeeze refers to a situation where there is a shortage or tight supply of cash. It occurs when a business or individual faces difficulty in acquiring enough funds to meet their financial obligations or expenses.

Senses and Usages

Sense 1: Financial Difficulty

In this sense, cash squeeze refers to a scenario where a business or individual experiences a temporary or prolonged struggle to access enough cash to make necessary payments, cover costs, or fulfill obligations.

Example Sentence 1: The company went through a cash squeeze due to a decline in sales, leading to late payment of bills and employee salaries.

Example Sentence 2: John faced a cash squeeze after losing his job, which made it challenging for him to pay his rent and utilities.

Sense 2: Liquidity Crunch

Cash squeeze can also refer to a liquidity crunch in the financial market, where there is a shortage of available funds or credit, leading to difficulty in borrowing or obtaining cash.

Example Sentence 1: The cash squeeze in the banking industry resulted in higher interest rates and limited access to loans for small businesses.

Example Sentence 2: During an economic downturn, there is often a cash squeeze as lenders become more cautious in providing credit.

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