Explanation
Healthy cash flow is essential for sustaining day-to-day business operations. Without it, even profitable companies can struggle to meet immediate financial obligations. There are three main types of cash flow:
- Operating Cash Flow: Generated from core business activities.
- Investing Cash Flow: Linked to the purchase or sale of assets.
- Financing Cash Flow: Results from loans, equity, or dividends.
Tracking cash flow provides insight into liquidity, profitability, and financial flexibility.
Practical Example of Cash Flow
A local bakery makes £50,000 in monthly sales and spends £35,000 on ingredients, wages, and rent. This gives them a net positive cash flow of £15,000.
How Bizcap Can Help:
If your business faces irregular income or sudden expenses, Bizcap offers fast business loans from £5K to £750K. With approvals in as little as 3 hours, we help stabilise your cash flow so you can focus on growth.