Because cash flow is an aggregate of the cash flowing into and out of your business, it can either be positive or negative. Your business has a negative cash flow when more cash is moving out of your business than the amount coming in, while a positive cash flow is achieved when your business has more cash coming in than is going out.
At the very least, any business will require to have a balanced cash flow to survive. To thrive and grow, however, it is fundamental that the business has a positive cash flow so that there’s money leftover for reinvestment once all the bills are settled.
Source article: https://hirefield.com.au/blog/2018/06/22/increase-your-cash-flow-with-outsourced-business-credit-management/
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