Meaning & use

cash crunch

noun·Advancedbusinessfinance

Last updated

UK/ˈkæʃ krʌntʃ/
US/ˈkæʃ krʌntʃ/

Meaning

  1. nouncountablebusinessfinance

    A situation in which a person or organization does not have enough money to pay for necessary things.

    Grammar: Countable noun; often used with 'a' or 'the'. Can be used for individuals, companies, or governments.

    Patterns

    • face a cash crunch
    • a cash crunch hits someone
    • ease a cash crunch

    The company faced a cash crunch after its biggest client went bankrupt.

    Many small businesses experienced a cash crunch during the economic downturn.

    The government announced emergency loans to help families in a cash crunch.

Word forms

pluralcash crunches

Common combinations

face a cash crunch
The startup faced a cash crunch when investors withdrew their funding.
ease a cash crunch
The new loan helped ease the cash crunch for the factory.
a severe cash crunch
A severe cash crunch forced the airline to cancel flights.
cash crunch looms
A cash crunch looms if the government does not raise taxes.

Synonyms and how they differ

liquidity crisis
Liquidity crisis is a more formal financial term for a severe cash crunch, often used in news reports.
cash flow problem
Cash flow problem is a broader term for difficulties with money coming in and going out, while cash crunch emphasizes the shortage.

Opposites

cash surplusfinancial stability

Word family

crunch noun
A critical moment or shortage, as in 'credit crunch'.

Commonly confused: cash crunch or credit crunch?

cash crunch vs credit crunch

A credit crunch is when banks are unwilling to lend money, while a cash crunch is when someone lacks cash to pay bills.

Practice

The company is facing a ______ because it cannot pay its suppliers on time.

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