Explore Jobs
Find Specific Jobs
Explore Careers
Explore Professions
Best Companies
Explore Companies
This question is about employer.
What is negative cash flow?
Negative cash flow is a financial scenario where an organization has less money coming in accounts than it does compare to the amount of money leaving its accounts. Businesses experiencing negative cash flow usually can not cover this amount from sales alone and must look to make financial investments that close this monetary gap.
Negative cash flow happens when the total amount of cash outflows, which includes expenses, investments, and other costs, is higher than the total figure of cash inflows, such as inflows from sales, collections, or other forms of receipts. Simply put, negative cash flow means that a business is spending more cash than it is earning or receiving.
Negative cash flows can poorly affect a business and lead to many different types of financial difficulties. If this financial situation persists, the lack of cash or funds often holds a company back in terms of growth and development. It can also lead to:
Budget cuts
Result in employee layoffs
The scrapping of certain expensive projects, and other growth-related plans a company might have
Negative cash flow is often experienced by new businesses. This is because starting any kind of business, large or small, is expensive, and it takes time to make steady positive cash flows. Negative cash flow is unavoidable for most new businesses, however, if it is sustained long enough, it can do severe damage to a business and its employees.
Choose from 10+ customizable resume templates
Zippia allows you to choose from different easy-to-use templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.
