You rely on good relations with creditors for the smooth operation of your business. Suppliers (trade creditors), the bank, and statutory bodies such as HM Revenue & Customs (HMRC) all affect the cashflow of most businesses.
Companies or individuals with debts they are unable to pay are said to be insolvent. By the time a business starts thinking about insolvency, things are already going badly. Simply allowing yourself to run out of money is the worst possible way of handling it. If you understand your options, you can take steps to improve the situation.