![]() Insight in the cashflow of an organization is the key to a healthy financial operation. The borrower should be able to pay the interest and amortization, which is only possible with a positive cashflow. ![]() ![]() However, there hasn’t been a flow of money since the consumer hasn’t necessarily paid yet.įor funding institutions, such as banks, the cashflow is the most important part, not the profit. When selling a product/service you generate revenue. Profit is the difference between income and costs, whereas cashflow consists of the actual flow of money. Simply put, cashflow is the flow of cash coming in and cash going out.
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