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cash flow
the sum of cash payments to a business less the sum of cash payments from the business
cash outflow
payments in cash made by a business, such as those to suppliers and workers
cash inflows
payments in cash received by a business, such as those from customers (debtors) or from the bank, e.g., receiving a loan
net cash flow
the sum of cash payments to a business (inflows) minus the sum of cash payments made by it (outflows)
cash flow forecast
estimate of a firm’s future cash inflows and outflows
opening cash balance
cash held by the business at the start of the month
closing balance
cash held at the end of the month becomes next month’s opening balance
net monthly cash flow
estimated difference between monthly cash inflows and outflows
credit control
monitoring of debts to ensure that credit periods are not exceeded
bad debt
unpaid customers’ bills that are now very unlikely ever to be paid
overtrading
expanding a business rapidly without obtaining all the necessary finance so that a cash flow shortage develops
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