2 min read
Definition
Free cash flow is the cash left after a business has paid its operating costs and the capital spending needed just to keep running. It is the money genuinely available to repay debt, reward owners or reinvest — the truest measure of financial freedom.
In plain terms
Take operating cash flow and subtract the essential capex — replacing worn-out kit, maintaining premises. What remains is free: cash the business can actually choose how to use, rather than cash already spoken for.
Why it matters
Free cash flow is the number to judge what debt a business can really afford, because it accounts for necessary reinvestment. See free cash flow explained.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.