Cash Inflow Definition
Cash inflow refers to all the cash that comes into your business. This might come from sales, or financing or investments. Read the cash inflow examples below for a better understanding of how it works.
Cash Inflow Examples
- Customer payments;
- Bank loan receipts;
- Bank interest;
- Sale of fixed assets;
- Supplier refunds;
- Directors loans to the business;
- Grants & Funding proceeds;
Why is Cash Inflow So Important to a Business
When it comes to business, cash is king.
Every business needs cash to pay its operating costs, pay bills and its staff. Even if a business wins a major contract, they may not get paid until the end of the contract.
That means cash inflow is so important to a business because they need to keep going to deliver the contract and then get paid.
Cash inflow can be one of the hardest things to manage in a business because of:
- Slow paying customers;
- The time involved in agreeing bank loans.
Read More: Cash Outflow Definition & Examples