Financial distress

Financial distress refers to a situation where an individual, organization, or entity faces difficulties in meeting financial obligations. This often manifests as an inability to generate enough revenue or income to cover expenses, debts, or necessary financial commitments. Financial distress can lead to severe consequences such as bankruptcy, closure of businesses, or loss of assets. It is a critical concern that can affect personal lives as well as broader economic stability. Effective management and proactive financial planning are essential to mitigate the risks and impacts of financial distress.