DEFINITION of 'Cash Flow Loan'
Borrowing cash typically to meet day-to-day operations or acquisitions. Reasons for needing a cash flow loan could be seasonal-demand changes, business expansion or changes in the business cycle.
INVESTOPEDIA EXPLAINS 'Cash Flow Loan'
Cash-flow loans can help in temporary situations, but if cash flow problems persist then companies need to improve their cash conversion cycle and get customers to pay faster.
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