CASH FLOW

CASH FLOW

This is the money generated by a business organization from its activities as opposed to money which is borrowed.

It is the money that the business actually received (cash inflow) and that which it expend (cash outflow).

Even loan obligations are expected by the lenders to repay from the borrower’s cash flow.

A cash flow risk is the expectation that the available cash may not be sufficient to fulfil the financial obligations.

A cash flow projection is a detailed budget of estimated cash inflows and outflows.