Meaning & use
cash crunch
Last updated
Meaning
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
| plural | cash 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
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.
Choose one answer.
A cash crunch means a shortage of money to pay necessary expenses. 'Cash flow' is the movement of money, not the shortage. 'Credit crunch' is about banks not lending. 'Budget' is a plan, not a problem.
Make it your own
Write a sentence using “cash crunch”, then check it and compare it with the examples above.