What Is Cash Flow?

A Cash Flow is an incoming or outgoing monetary exchange through transactions involving businesses or private individuals. Business revenues and expenses are forms of incoming and outgoing cash flows as are an individual's salary and monthly bills. The business of advance funding in exchange for future payments has been practiced for thousands of years in one form or another around the world. The idea that a cash flow could be bartered, bought or sold is a concept that is relatively new in modern business.

Over roughly the last 25 years, two methods of financing have emerged to greatly influence the cash flow industry as it is known today: Owner Financing and Factoring.

Owner financing has actually been a viable option for homeowners and real estate investors since the early 1900's, but it wasn't until the 1970's and 1980's, when traditional interest rates in the housing industry peaked over 20 percent, that owner financing gained a renewed popularity. More consumers are able to afford housing as a result of the spread of owner financing. Today, privately held mortgage notes are now widely bought and sold in a multi-billion dollar secondary market that even includes note securities trading on Wall Street.

The second method of finance which has impacted the development of the cash flow industry is factoring. Factoring is the purchase of accounts receivables at a discount for immediate cash. Because factoring is such a widely used form of cash flow, we have provided more comprehensive information here:

FACTORING - The Facts About Factoring

The best way to investigate your cash flow potential is to contact a Certified Cash Flow Consultant for more assistance today!

Contact a certified Cash Flow consultant for assistance today!