Managing Cash Flow

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Thursday, June 5th, 2014

Chances are, money is not your business, but without it, you have no business. While you likely excel at the services you offer or products you supply, it is necessary for you to have a good understanding of cash flow and how it can affect your business. Money IS our business here at National Business Capital so let us share some thoughts.

Cash flow is the movement of money in and out of the business. To have a positive cash flow, you must have more money coming into the business than going out. A negative cash flow means there is more money going out than coming in. Projecting the cash flow is an important part of managing a business.

A cash flow statement is typically broken down into three categories:

  • Operating Cash Flow is the working capital your business has on hand.
  • Investment Cash Flow refers to cash generated from non-operating activities.
  • Financing Cash Flow is the flow of cash between the business and lenders, shareholders, and investors.

It is imperative that you understand how cash flows in and out of your business so that you are prepared to cover all expenses and take advantage of all opportunities. Unfortunately, even the best planning can fall short. If that happens, it is important to know sources you can turn to for help. That’s where National Business Capital comes in. We offer fast and simple financing to help get past the rough patch. Call us to learn about the different financing options we have so you will be prepared if and when the need arises!

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