Search Investopedia

Cash Flow Loan

Filed Under »
Dictionary Says

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 Says

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.

Related Definitions

  •

    Cash Flow

    1. A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities - financing, operations or investing - although ...
    Read More »

  • Cash Conversion Cycle - CCC

    A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. The cash conversion cycle attempts to measure the amount of ...
    Read More »

  • Excess Cash Flow

    A term used to describe the income derived from mortgages or other assets backing a bond that is in excess of what is needed to retire the bond. The excess cash flow may be passed to ...
    Read More »

    • Cash

      Legal tender or coins that can be used in exchange goods, debt, or services. Sometimes also including the value of assets that can be converted into cash immediately, as reported by a ...
      Read More »

    • Senior Stretch Loan

      A specific type of loan to a business entity, which possesses certain characteristics of both asset-based loans and cash-flow loans. Senior stretch loans are cheaper than straight ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions