1- Discuss the reasons that a manufacturing company like Cloudveil might experience this type of cash flow problem. Is this a sign or poor management or is the nature of the business?

Inadequate cash flow is a symptom of a management problem in a business. Poor cash flow management is known to have placed an end to even successful large businesses. There's an old adage about business that "cash is king" and, if that's so, then cash flow is the blood that keeps the heart of the kingdom pumping. Cash flow is one of the most critical components of success for a small or mid-sized business. Without cash, profits are meaningless. Many a profitable business on paper has ended up in bankruptcy because the amount of cash coming in doesn't compare with the amount of cash going out.

Reasons of cash flow problem * Allowing customers too much credit:
Allowing customers too much credit can put a company in a vulnerable position as you keep outlaying costs to complete the work yet are not getting any income to fund new or existing orders. * Slow paying Accounts:
As mentioned above with allowing customers too much credit, the same thing can be said for slow paying customers. If you are doing a job for a customer then waiting 30-60 + days for the invoice to be paid plus new orders are continuing to come in, you may find yourself in a cash flow crunch. * Sudden or rapid growth:
This is a big one, rapid growth sounds like a positive direction to be going in but It is if you have the capital to fund new orders! If you are taking on customers while still waiting for payments from others you may find yourself in a cash flow problem. * Under capitalized:
‘Cash is King’ without it, you can’t grow your business or keep it running.

* Overtrading:
This occurs where a business expands too quickly, putting pressure on short-term finance. For example, a retail chain might try to open too many stores too quickly before each starts to generate profits

2- What steps can a small company such as Cloudveil take to deal with a long cash flow cycle?