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Glite Dictionary
🔄 Too many trades 🏢 Too much business
overtrading

overtrading

7.7
Doing more business than a company can handle, causing money problems
  • noun
  • /ˌoʊvərˈtreɪdɪŋ/
  • Specialized
translation icon : sobreextensión
  • The company suffered losses because of overtrading during its first year of rapid growth.

Examples

  • Banks often warn small businesses about the risks of overtrading when expanding too quickly.

  • Due to overtrading, the retailer could not pay its suppliers on time.

  • The company suffered from overtrading last year.

  • Is overtrading common in small businesses?

  • Banks often warn small businesses about the risks of overtrading when expanding too quickly.

  • The company suffered losses because of overtrading during its first year of rapid growth.

  • Due to overtrading, the retailer could not pay its suppliers on time.

Synonyms

overextension
vsovertrading
1 5.8

Taking on more work or responsibility than can be handled

is specifically conducting more sales than available resources can support
overexpansion
vsovertrading
1 5.4

A time when a business grows too fast or too large and causes money problems

focuses on excess business transactions that strain available finances
overcommitment
vsovertrading
5.0

Promising or taking on more work than you can manage

is doing more commercial activity than resources allow

How Much Business

overtrading
  • Specialized
7.7
demand
  • Specialized
193 2.7
quiet time
21 3.7

Surface Forms

overtrading singular
overtradings plural

Morphology

overtrading = overtrade (transparent) = over + trade + ing

The step from 'overtrade' to 'overtrading' is a straightforward gerund/nominalization and retains the meaning of excessive business activity.

Etymology

Overtrading comes from the parts over- meaning 'too much' and trade meaning 'buying and selling'. So overtrading can mean doing more business than your money or staff can handle, which is why it often causes money problems.