Outbound Cash Flow

DEFINITION of 'Outbound Cash Flow'

Any money a company or individual must pay out when conducting a transaction with another party. Outbound cash flows can include cash paid to suppliers, wages given to employees and taxes paid on income.

BREAKING DOWN 'Outbound Cash Flow'

An outbound cash flow occurs whenever you are required to pay money. The opposite of an outbound cash flow is an inbound one. For example, when a company issues bonds to raise funds, they receive an initial inbound cash flow. However, when they are required to service this debt by paying coupons on the bonds, they company will experience an outbound cash flow.