What general effects are associated with limited access to financing.

Fin 571 week 6 assignment working capital simulation: managing growth

Limited access to financing can have a range of effects, depending on the situation. Generally, it can lead to limited investment, restricted growth opportunities and capital constraints, meaning businesses may not be able to take advantage of potential business opportunities. Additionally, lack of financing can lead to reduced purchasing power and higher costs for goods or services as businesses are unable to pay suppliers in full or purchase inventory at discounted prices. Finally, employees may suffer due to limited access to funds; they may face wage stagnation or cuts as well as job losses.