Cash Flow

What Are Cash Equivalents? Meaning, Examples, How to Calculate

Effective liquidity management requires more than tracking cash alone. Monitoring cash equivalents gives businesses the flexibility and understanding to meet obligations and seize growth opportunities. Businesses that maintain healthy levels of cash equivalents can cover short-term debts, strengthen their financial resilience, and remain confident in key operational strategies and decisions. This comprehensive guide outlines cash […]

Cash Inflow vs. Outflow: What’s the Difference?

Effectively managing cash flow is a requisite of running any type of company, evidenced by cash flow problems being the leading cause for going out of business. With this in mind, it’s imperative to have an understanding of the two elements that make up cash flow–cash inflows and cash outflows. Your ability to keep track […]

Cash Flow Lending for Small Businesses

Many small businesses need a cash infusion to keep operations running smoothly in the early stages. Often, these businesses rely on external funding so they can maintain a positive cash flow and fund essential expenses. One problem? Most small and new companies struggle to qualify for traditional bank loans. This is where cash flow loans […]

How to Perform a Working Capital Analysis

Your working capital is one of the most important measurements of your business’s financial health. As such, understanding how to calculate working capital and analyze what it means for your company’s financial performance is essential. By regularly performing a working capital analysis, you will have a clear understanding of where your company stands financially, as […]

Working Capital Optimization Tips

If your business isn’t achieving its financial goals, the first thing you should consider is whether you’re optimizing your working capital. A recent study revealed that U.S. businesses are sitting on an astonishing $1.76 trillion of untapped working capital. Maximizing working capital is a common challenge for new business owners, but one that can be […]

Current Ratio vs. Working Capital – What’s the Difference?

Picture a situation in which you, a small business owner, are seeking a loan for expansion. To do this, you must be adept at differentiating between the current ratio and working capital. The current ratio will inform you of your company’s ability to pay off short-term obligations. Meanwhile, working capital offers you insight into operational […]

EBITDA vs. Cash Flow: What’s the Difference?

There are two key metrics at the forefront of financial analysis and decision-making in the business world: EBITDA and cash flow. While both offer valuable insights into a company’s financial health, they serve different purposes and paint distinct pictures of its fiscal status. Understanding the nuances between EBITDA vs. cash flow is essential for business […]

What Are the Different Types of Working Capital?

Usually, “working capital” is referenced as a general, standalone term. However, there are actually many different classifications of working capital. Having a thorough understanding of these types of working capital will allow you to better manage your finances, providing a clearer picture of where your business stands and what adjustments you need to make going […]

Cash Flow vs. Profit: How Are They Different?

When business owners need to assess the financial health of their organizations or firms, two essential variables come into play: cash flow and profit. It’s important to understand cash flow and profit because, while they each influence the other, they have vastly different meanings, causes, and impacts. In this article, we’ll break down the differences […]

What Is Negative Working Capital and Is It Good or Bad For My Business?

When it comes to having a complete understanding of the financial health of your business, few metrics are more important to stay on top of than working capital. Small business owners in particular should regularly track working capital changes and monitor if they begin to experience consistent negative working capital. But what is negative working […]

What Is Working Capital Turnover?

As a business owner, it’s vital to understand the intricacies of your company’s finances, and it all starts with intelligent working capital management. One of the first steps to take when analyzing your financial outlook is learning about your working capital turnover. Working capital turnover, sometimes referred to as “sales to working capital ratio,” is […]

What Is Incremental Cash Flow?

Cash flow is the lifeblood of business. It not only showcases the financial health of an organization, but it is also one of the primary variables that will help you decide how to prioritize your company’s next moves. There are a few different subsidiaries of the general cash flow term, such as net cash flow […]

Cash Flow vs. Revenue

Navigating the complexities of business finances can be daunting, especially for small business owners who wear multiple hats. Understanding cash flow and how it differs from revenue is critical for the financial health of your company. While the two terms may sound similar, they have different meanings, and to ensure the financial success of your […]

How To Calculate Cash Flow From Assets

If you’re a small business owner, there’s a good chance you’re often searching for ways to improve cash flow. Sometimes, alternative lending options or new business ideas can provide solutions, but you may first want to look at your business’s cash flow from assets to find opportunities to build up your profit. While “cash flow […]

Tips For Small Businesses Looking For A Cash Infusion

No business can survive for too long when its expenditures exceed the amount of money coming in, also known as negative cash flow. Periods of negative cash flow are not exclusive to businesses struggling to make money, as even businesses with high revenue can experience cash flow challenges. To combat this problem, business owners strive […]

2024 Small Business Revenue Statistics

Small businesses play a critical role in our local and global economies, but it can be difficult to make informed business decisions without having benchmarks or statistics to base your decisions on. We have put together some key small business revenue statistics to give business owners an idea of how their companies stack up against […]

What Are My Working Capital Needs?

As a business owner, properly managing your working capital is essential to maintaining healthy business operations and creating growth opportunities, and knowing how much working capital you need is the first step towards achieving this type of financial health. However, figuring out how much working capital you need can be tough since there are many […]

What Is Negative Cash Flow?

Business owners often look to profit and revenue as key determinants of success. However, a company’s overall financial health also coincides with another equally important measure — cash flow. While most established businesses boast a consistent stream of positive cash flow, it’s not uncommon for startups and small businesses to, at some point, contend with […]

9 Tips to Improve Your Working Capital

Working capital is vital to any business and is an essential indicator of short-term financial health. Unfortunately, businesses all over the world commonly suffer from a lack of working capital, forcing entrepreneurs to get creative to combat this problem. While business owners struggle to come up with adequate capital for a multitude of reasons, a […]

What Is Cash Flow in Business?

Many business owners believe that the profits they make is what sustains their businesses. While this is true in some respect, consistent cash flow is essential to maintain and grow business operations as strong cash inflows help you pay your bills on time, purchase equipment and inventory, and turn a profit in a scalable manner. […]

Invoice Due Date Calculator

Managing your business’ cash flow can be difficult, but knowing how long you have to pay your invoices (and how long you have to wait to be paid by your customers) can make budgeting and managing your cash flow that much easier. Use altLINE’s invoice due date calculator below to see when your invoices are […]

How to Improve Cash Flow

As a business owner, cash flow problems can be stressful. Paying rent, making payroll, and paying off debts all become even more taxing when your cash inflow is not as much as your expenses. To help you improve your cash flow and worry less over your payables, we have put together this list of some […]

5 Types of Equity Financing for Small Business

Starting a new business presents many challenges, especially having insufficient capital. As a small business owner, you may not have enough money to start and grow your business. So you have to rely on others to provide you with capital. Individuals and organizations willing to finance your business will give you different terms, depending on […]

What Is an Opportunity Cost and How Is it Calculated?

Opportunity cost is a popular term not only in the business and financial realm, but in everyday conversation as well. These costs refer to what you sacrifice when you choose one option over other alternatives, however since this term is used so often and generally, it’s important to understand how you calculate opportunity cost, including […]

Small Business Loan Statistics (2025)

If you’re a small business owner considering applying for a loan, it can be helpful to first have an idea of some small business loan statistics. By understanding what the national market trends and averages are, you can have a benchmark of sorts to help gauge what might be attainable and realistic for your business. […]

How to Calculate Your Free Cash Flow

When you’re running a business, there are many things to keep records of. There are expenses, taxes, and payroll, to name a few. One essential thing to track is your free cash flow, or FCF. It may seem daunting, but this article will detail what free cash flow is and how to calculate it. What […]

How to Make a Profit and Loss Statement

Making a profit and loss statement (P&L) is one of the most important things you can do for your business—in fact, it’s one of the three essential financial statements. This document tells you how much money your company has made and lost over a specific time. It can also provide insights into your business’s financial […]

Calculating Discounted Cash Flows in Payback Period

Business owners and project managers use tools like discounted cash flows in the payback period to make fiscally responsible investment decisions. You can determine whether a proposed project is viable with this formula since this formula compares the initial costs involved with the financial returns you can expect to receive. In this article, you will […]

Net Cash Flow and How It’s Used

If you’re a first-time small business owner, you’re probably getting hit with financial terms like “net cash flow” that would make the average person want to run for the hills. However, it is important to stay informed to help your business remain afloat. Understanding bankruptcy, profit and loss and everything in between – financial literacy […]

Email Templates to Politely and Professionally Ask for Past-Due Payment

Running your own business presents a lot of upside. It provides flexibility and full control to make every important business decision. However, that’s not to say owning your own business or working as a contractor is all roses. Whereas being an employee makes your paycheck a sure thing, business owners often only get paid when […]

How to Collect Unpaid Invoices

You’ve been working hard for months, maybe even years, to build your business and take good care of your customers. But regardless of how committed you are to fostering these relationships, it’s not uncommon for them to fail to abide by payment terms and allow invoices to become overdue. You may then be left wondering […]

How to Audit Your Cash Flow and Accounts Receivables

Performing a cash flow audit is an essential responsibility that every business owner should have on their year-end accounting checklist. Auditing a cash flow statement can show how your accounts receivable, inventory, and accounts payable line up yearly. By analyzing these trends, you’ll be better prepared to help your business grow. Falling behind on auditing […]

How To Calculate Cash Flow Margin

A company’s cash flow margin is one measure of its profitability. The cash flow margin reveals whether an organization can convert sales activities into liquid assets. While this margin can also show how profitable a company is, there isn’t a firm, universal baseline. A margin that’s ideal for one company might indicate a loss of […]

Cash Flow Risk Management and How to Reduce Risk

In any business, cash flow, which is the amount of money that moves in and out to determine the value of the business, causes entrepreneurs sleepless nights. Because a business is exposed to several uncertain financial issues, cash flow risk can come in many forms. These include competitive, industry, or financial cash flow risk, resulting […]

How to Forecast Cash Flow by Building a Cash Flow Model

You could make a good argument that no financial measure is more important for a business than cash flow. Cash flow problems are the No. 1 reason behind business’s failing to age beyond three years. Not only is cash flow necessary for a business’ survival, but a certain level of positive cash flow will eventually […]

Cash Flow Loans: What They Are, How They Work, Examples

Whether you want to fulfill payroll obligations, open a new business branch, or invest in a promising opportunity, a cash flow loan can be an excellent way to finance your capital needs. Confused about cash flow loans and how they work? Here’s an in-depth guide covering everything from what a cash flow loan is, to […]

How to Improve Cash Flow for Your Trucking Company

Most small business owners are acutely aware of the cash flow challenges associated with expanding their businesses, and trucking company owners are no exception. It isn’t easy to establish and maintain a trucking business. It takes hard work, business knowledge and quick thinking to succeed and maintain positive cash flow. While not all business owners […]

Cash Budget vs. Statement of Cash Flows

As a business owner, managing cash is a tedious but necessary part of the job. Keeping a hold of your cash flow is critical for a thriving, successful business, but it’s not always the simplest task or the easiest to understand. Two terms often thrown around in the realm of business management are ‘cash budget’ […]

How to Calculate the Cash Conversion Cycle

When you’re running a small business, you must know several formulas to keep expenses low and maintain high-profit margins. Other formulas present business owners opportunities to know how fast their inventory is selling and tracking cash flow, called the cash conversion cycle (CCC). It’s also known as the net operating cycle. Read on to find […]

Cash Flow Analysis Techniques and Tips

Running a small business is no easy feat, but running a successful small business takes even more time and skill. Performing a cash flow analysis and looking at your expenses can be the difference between your business floating or sinking. Knowing the financial health of your company helps you identify what you’re doing right and […]

Small Business Cash Flow Management: Tips & Strategies

Proper cash flow management is the key to success for many small business owners. Unfortunately, small businesses that do not practice effective cash flow management strategies tend to fail quickly. It’s not uncommon for young businesses to suffer from cash flow problems; in fact, it’s the norm. However, business owners need to focus on minimizing […]

What Is the Cash Ratio and How Is It Used?

The cash ratio, also known as the cash asset ratio, is a liquidity measurement used by financial analysts. Its purpose is to evaluate a company’s capability to pay off any short-term debts. This capability is determined by calculating the ratio of the short-term assets against a company’s short-term liabilities. There are two other common ratios: […]

How to Create a Business Cash Flow Statement

Every business owner needs to have a good understanding of the three essential financial documents: profit and loss statement, balance sheet, and cash flow statement. A profit and loss statement details income and expenses over a certain period, and a balance sheet details your assets and liabilities, but what exactly is a cash flow statement? […]

9 Ways for Businesses to Survive and Thrive During COVID-19

No matter the size of your business, it probably has been caught in the crosshairs of COVID-19 in one way or another. The pandemic has brought businesses to their knees, fighting to keep customers and finding new ways to stay innovative and grow. Businesses can survive during the COVID-19 pandemic, but it’s going to take […]

How to Get Your Invoices Paid Faster

For many companies, accounts receivable collection can at best be described as a chore and at worst as an anxiety-inducing experience, where just one large delinquent customer can put a business in jeopardy. Whether it’s one unreliable customer or several, business owners regularly find themselves asking the question, “how do I get paid faster?” If […]

Cash Flow Problems and Customer Payment

What do trucking companies, staffing companies, manufacturers, consultants, and all other industries all have in common? In addition to supplying products and services to Fortune 500 companies, they’re all subject to the same common business strain – cash flow problems. And more often than not, cash flow problems and long customer payment terms go hand […]

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