
{"id":11591,"date":"2020-01-23T15:21:49","date_gmt":"2020-01-23T15:21:49","guid":{"rendered":"https:\/\/liquidcapitalcorp.com\/?p=11591"},"modified":"2020-06-04T14:18:57","modified_gmt":"2020-06-04T14:18:57","slug":"cash-flow-terminology","status":"publish","type":"post","link":"https:\/\/liquidcapitalcorp.com\/es\/blog\/cash-flow-terminology\/","title":{"rendered":"Cash flow terminology: Learn the basics"},"content":{"rendered":"<p style=\"text-align: left;\"><em>Must-know cash flow terminology to help you stay cash positive.<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11594 size-large\" src=\"https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-1030x609.jpg\" alt=\"Cash Flow Terminology\" width=\"1030\" height=\"609\" srcset=\"https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-1030x609.jpg 1030w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-300x177.jpg 300w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-768x454.jpg 768w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-1536x908.jpg 1536w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-2048x1211.jpg 2048w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-1500x887.jpg 1500w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-705x417.jpg 705w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/schreibtisch-notizbuch-stift-arbeiten-7103-450x266.jpg 450w\" sizes=\"auto, (max-width: 1030px) 100vw, 1030px\" \/><\/p>\n<p>Cash is king, and cash flow \u2014 the net money flowing into and out of a business \u2014 is your operational lifeblood. When cash is in high supply, you can be riding a wave of exhilaration \u2014 making entrepreneurship feel like the golden path. But when cash flow issues arise, it can threaten your entire enterprise.<\/p>\n<p>Sure, you might be able to <a href=\"https:\/\/liquidcapitalcorp.com\/blog\/alternative-finance\/cash-flow-survivor\/\" target=\"_blank\" rel=\"noopener noreferrer\">\u2018outwit\u2019 your bank loan challenges<\/a>, but sometimes borrowing from the bank isn\u2019t always an option. The best way to get ahead of these challenges is to know your options and alternatives to keep cash flow positive.<\/p>\n<p>Here are some cash flow terms to help you stay on top of your terminology.<\/p>\n<h2><strong>Break-even point\u00a0<\/strong><\/h2>\n<p>The level of sales revenue a business needs to cover all operating expenses, which would put you at a zero profit. (Sales revenue \u2014 Cost of sales and other expenses = Zero). Everything beyond the break-even point would be considered a net positive profit level.<\/p>\n<h2><strong>Burn rate<\/strong><\/h2>\n<p>This is the rate that a company is losing money, figuratively describing cash as being \u2018burned.\u2019 Typically, the burn rate is expressed as a monthly figure, and it can be synonymous with negative cash flow. <a href=\"https:\/\/www.investopedia.com\/terms\/b\/burnrate.asp\" target=\"_blank\" rel=\"noopener noreferrer\">Investopedia<\/a> also describes this with a twist in the venture capital world as, \u201c\u2026the rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations.\u201d<\/p>\n<h2><strong>Cash Conversion Ratio<\/strong><\/h2>\n<p>This is the amount of time between when your business pays for its inventory, also known as your cost of goods sold, and when it receives payment from its customers.<\/p>\n<h2><strong>Cash Flow Budget<\/strong><\/h2>\n<p>The cash flow budget is quite simply a report on your business cash flow, showing how much money is entering and exiting the business. The cash flow budget shows how much cash you\u2019ll have on hand at any given period of time.<\/p>\n<h5><strong><em>Related: <\/em><\/strong><a href=\"https:\/\/liquidcapitalcorp.com\/blog\/cash-flow-2\/will-i-have-enough-cash-to-stay-afloat\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Learn 7 things a cash flow budget can teach you.<\/em><\/a><\/h5>\n<h2><\/h2>\n<h2><strong>Cash Flow Statement<\/strong><\/h2>\n<p>Also called a \u201cStatement of Cash Flows,\u201d this is part of your financial statements.\u00a0<a href=\"https:\/\/liquidcapitalcorp.com\/blog\/cash-flow-2\/7-steps-to-create-your-cash-flow-budget\/\" target=\"_blank\" rel=\"noopener noreferrer\">Explore the steps to create your cash flow budget here.<\/a><\/p>\n<h2><strong>Discounted Cash Flow<\/strong><\/h2>\n<p>A method used to value an investment by discounting its future expected cash flows to find their value today, or net present value. The discount rate is chosen to reflect the risk of the investment. Possible discount rates are the weighted average cost of capital or the discount rate from similar projects.<\/p>\n<h2><strong>Negative Cash Flow<\/strong><\/h2>\n<p>Your cash flow is considered \u2018negative\u2019 when <em>cash spending<\/em> is more than cash generation over a particular period of time. In this case, the business spends more than it makes. <a href=\"https:\/\/www.wallstreetmojo.com\/negative-cash-flow\/\" target=\"_blank\" rel=\"noopener noreferrer\">See examples here.<\/a><\/p>\n<h2><strong>Positive Cash Flow<\/strong><\/h2>\n<p>Conversely, your cash flow is considered \u2018positive\u2019 when <em>cash generation<\/em> is more than cash spending over a particular period of time. This should be your goal.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><em>Learn much more about factoring terminology in the <\/em><a href=\"https:\/\/liquidcapitalcorp.com\/other-resources\/ultimate-factoring-encyclopedia\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Ultimate Factoring Encyclopedia<\/em><\/a><em>. This free resource includes every definition you\u2019ll need to know when applying for invoice factoring and securing working capital. <\/em><em>Still have questions about cash flow? <\/em><a href=\"https:\/\/liquidcapitalcorp.com\/about-us\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Connect with us today<\/em><\/a><em>!<\/em><\/strong><\/p>\n<h3><a href=\"https:\/\/liquidcapitalcorp.com\/other-resources\/ultimate-factoring-encyclopedia\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11601 size-large\" src=\"https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-1030x243.jpg\" alt=\"Ultimate Factoring Encyclopedia\" width=\"1030\" height=\"243\" srcset=\"https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-1030x243.jpg 1030w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-300x71.jpg 300w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-768x181.jpg 768w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-1536x363.jpg 1536w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-1500x354.jpg 1500w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-705x166.jpg 705w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1-450x106.jpg 450w, https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/UltimateFactoringEncyclopedia-ebook-Image-CTA-Banner-1.jpg 1669w\" sizes=\"auto, (max-width: 1030px) 100vw, 1030px\" \/><\/a><\/h3>\n<p>&nbsp;<\/p>\n<h3><strong>About Liquid Capital<\/strong><\/h3>\n<p><em>At Liquid Capital, we understand what it takes for small, medium, and emerging mid-market businesses to succeed \u2013 because we\u2019re business people ourselves. Our company is built on a network of locally owned and operated Principal Offices, so whenever you\u2019re talking to Liquid Capital you\u2019re talking directly to your funding source and a fellow business person.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Must-know cash flow terminology to help you stay cash positive. Cash is king, and cash flow \u2014 the net money flowing into and out of a business \u2014 is your operational lifeblood. When cash is in high supply, you can be riding a wave of exhilaration \u2014 making entrepreneurship feel like the golden path. But [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[148,1],"tags":[],"class_list":["post-11591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biz-tips","category-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cash flow terminology: Learn the basics - Liquid Capital<\/title>\n<meta name=\"description\" content=\"Your guide to cash flow terminology for business owners that can help you stay cash positive and get ahead of potential business challenges.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/liquidcapitalcorp.com\/fr\/blog\/cash-flow-terminology\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash flow terminology: Learn the basics and stay cash positive\" \/>\n<meta property=\"og:description\" content=\"Your guide to cash flow terminology for business owners that can help you stay cash positive and get ahead of potential business challenges.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/liquidcapitalcorp.com\/fr\/blog\/cash-flow-terminology\/\" \/>\n<meta property=\"og:site_name\" content=\"Liquid Capital\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/liquid.capital\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-23T15:21:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-06-04T14:18:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/Untitled-design.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Liquid Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Cash flow terminology: Learn the basics and stay cash positive\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/liquidcapitalcorp.com\/wp-content\/uploads\/2020\/01\/Untitled-design.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@Liquid_Capital\" \/>\n<meta name=\"twitter:site\" content=\"@Liquid_Capital\" \/>\n<meta name=\"twitter:label1\" content=\"Escrito por\" \/>\n\t<meta name=\"twitter:data1\" content=\"Liquid Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Tiempo de lectura\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutos\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/fr\\\/blog\\\/cash-flow-terminology\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/fr\\\/blog\\\/cash-flow-terminology\\\/\"},\"author\":{\"name\":\"Liquid Capital\",\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/#\\\/schema\\\/person\\\/661c112156cb23986c4bdc6662f2fc0e\"},\"headline\":\"Cash flow terminology: Learn the basics\",\"datePublished\":\"2020-01-23T15:21:49+00:00\",\"dateModified\":\"2020-06-04T14:18:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/fr\\\/blog\\\/cash-flow-terminology\\\/\"},\"wordCount\":584,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/fr\\\/blog\\\/cash-flow-terminology\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/wp-content\\\/uploads\\\/2020\\\/01\\\/schreibtisch-notizbuch-stift-arbeiten-7103-scaled.jpg\",\"articleSection\":[\"Biz Tips\",\"Blog Posts\"],\"inLanguage\":\"es\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/fr\\\/blog\\\/cash-flow-terminology\\\/\",\"url\":\"https:\\\/\\\/liquidcapitalcorp.com\\\/fr\\\/blog\\\/cash-flow-terminology\\\/\",\"name\":\"Cash flow terminology: Learn the basics - 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