The problems that Hal faces with his cash flow comes from two sources. First, Hal is compelled to immediately pay his bills, but it takes him three to receive the money from the sales. Secondly, his business has advanced by about 12 percent every month for the last four months. However, the payments made for labor, for materials, and for sales in subsequent months exceed the cash payment (that is, a third of the revenue) received from the sales added to the business by far. Hence, this forms a type of "growth trap" which results in the failure of most startup or small-scale firms that would otherwise be successful