Growth consumes cash before it produces it. Payroll, materials, and inventory are funded now; collection happens in 45 or 60 days. The faster the growth, the wider the gap, and the gap compounds each cycle.
The mechanics
If a business converts cash in 55 days and grows 30% in a year, working-capital investment rises roughly in step with revenue. Profit on paper does not arrive as cash in time to fund the next cycle.
This is the most common reason a growing, profitable company runs out of money.
What to do about it
Measure the cash conversion cycle before adding volume. Decide in advance which growth is worth financing and which is worth declining, and put a facility in place that scales with receivables rather than a fixed amount agreed at last year's revenue.