Hard-numbers snapshot: why running out of cash / working capital knocks companies flat
| Statistic | Source | Year |
|---|---|---|
| 82% of small-business failures trace back to poor cash-flow management or working-capital shortfalls. | U.S. Bank / SCORE meta-study | 2024 |
| 38% of start-ups that die explicitly say “we ran out of cash” in post-mortem surveys. | CB Insights | 2025 |
| One in four businesses fails inside Year 1 because bills come due before customer money arrives. | PaylineData | 2025 |
| Nearly 20% of start-ups cite “insufficient capital/reserves” as the primary cause of closure. | U.S. Chamber of Commerce | 2025 |
| 90-day payment terms from big customers bankrupt one third of B2B newcomers even though sales are growing. | C2FO supplier survey | 2025 |
Key takeaway: Profit on paper means nothing if the checking account hits zero; 4 out of every 5 business deaths start with the cash tap running dry.
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