Financial Distress

Financial Distress reflects the struggles that individuals or organizations face when they encounter difficulties in meeting their financial obligations. This category encompasses a range of issues, from overwhelming debt and cash flow problems to insolvency and bankruptcy. Financial distress is often characterized by a lack of liquidity, reduced creditworthiness, and increased stress. Understanding financial distress is crucial for better financial planning and management, as it helps in identifying warning signs early and formulating effective strategies to mitigate risks. Addressing financial distress promptly can prevent more severe consequences and lead to a more sustainable financial future.