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What cash flow means
Cash flow tracks real money entering and leaving your account, as opposed to profit, which is recorded when a sale is made whether or not it is paid. A business lives or dies on cash flow: you can be profitable and still run out of money.
Why it matters
Managing cash flow means timing income and outgoings so you always have enough to meet obligations — and using short-term finance to bridge genuine gaps. See cash-flow management.
What it means for you
For the full definition see the glossary entry. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Why is cash flow different from profit?
Profit is booked when a sale is made; cash flow is the actual money in and out. A profitable business can fail if its cash is locked in unpaid invoices or stock when bills fall due.
How do I improve cash flow?
Collect faster, manage supplier terms, keep a buffer, and use short-term finance to bridge timing gaps. Forecasting is the foundation of all of it.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.