2 min read
Definition
Net cash flow is total cash in minus total cash out over a period, across trading, financing and investment. A positive figure means the bank balance rose; a negative one means it fell, regardless of whether the business made a profit on paper.
Why it matters
Repeated negative net cash flow is an affordability red flag, since a loan adds another outflow. Watching it month by month is central to forecasting repayments.
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