{"id":195668,"date":"2019-11-20T08:24:49","date_gmt":"2019-11-20T16:24:49","guid":{"rendered":"https:\/\/www.nationalfunding.com\/blog\/?p=195668"},"modified":"2022-06-02T16:14:24","modified_gmt":"2022-06-02T23:14:24","slug":"negative-cash-flow","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/","title":{"rendered":"What Is Negative Cash Flow?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Negative cash flow is when a business <\/span>spends more money than it makes during a specific period. A company&#8217;s free cash flow shows the amount of cash it has left over after paying operating expenses. When there&#8217;s no cash left over after expenses, a company has negative free cash flow.<\/p>\n<h2>4 Reasons Your Cash Flow May Be Down<\/h2>\n<p>If your cash flow isn&#8217;t positive, that doesn&#8217;t always mean your company is in the red. There are a number of reasons your cash flow may be temporarily down, such as:<\/p>\n<ul>\n<li><strong>Mismatched spe<\/strong><strong>nding and income<\/strong><strong>.<\/strong> Paying bills for purchases made in previous quarters or annual expenses like your taxes could negate your cash flow. To avoid this, set aside funds for expenses as they are accrued rather than taking from one period&#8217;s cash flow to cover the expenses of other periods. The <a href=\"https:\/\/www.score.org\/resource\/12-month-cash-flow-statement\" target=\"_blank\" rel=\"noopener noreferrer\">SCORE<\/a> cash flow template could help to keep you on track.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" title=\"Female entrepreneur works on her business concept on her laptop\" src=\"https:\/\/www.nationalfunding.com\/blog\/wp-content\/uploads\/2019\/11\/youngafricanamericanfema_743043.jpg\" alt=\"Female business owner calculates her negative cash flow in her home office\" width=\"500\" height=\"282\" \/><\/p>\n<ul>\n<li><strong>Fraudulent activity. <\/strong>Unexplained negative cash flow could be a sign of theft or fraud. If you suspect an employee, vendor or other individuals may be stealing from your company, hire an outside expert to help you investigate. To prevent fraud in the future, install security cameras, divide tasks among employees, and change your inventory tracking system.<\/li>\n<\/ul>\n<ul>\n<li><strong>Large cash outflows. <\/strong>If your company is spending big bucks to cover equipment and expansion costs, you may show more cash outflow than cash intake for the month, quarter or year. If purchasing new equipment will tie up your cash flow, you may consider <a href=\"https:\/\/www.nationalfunding.com\/equipment-leasing\/\" target=\"_blank\" rel=\"noopener noreferrer\">leasing the equipment<\/a> instead of purchasing it outright.<\/li>\n<\/ul>\n<ul>\n<li><strong>Actual loss<\/strong><strong>. <\/strong>Negative cash flow may actually mean your business is losing money, especially if you&#8217;re seeing it again and again. You may be able to solve this problem by increasing prices, expanding your market share, cutting costs or adding new products or service lines.<\/li>\n<\/ul>\n<article>If your cash flow has been negative for some time, finding the problem and <a href=\"https:\/\/www.nationalfunding.com\/blog\/4-ways-to-stay-cash-flow-positive-through-your-slow-season\/\">developing a solution<\/a> will help your small business <a href=\"https:\/\/www.nationalfunding.com\/blog\/loan-financing\/\" target=\"_blank\" rel=\"noopener noreferrer\">build positive cash flow<\/a> moving forward.<\/article>\n","protected":false},"excerpt":{"rendered":"<p>If your business has negative cash flow, it doesn&#8217;t necessarily mean you&#8217;re in the red. These easy fixes will help your business get back on track.<\/p>\n","protected":false},"author":12,"featured_media":195666,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[70,96,114],"class_list":["post-195668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-health","tag-equipment-financing","tag-inventory-management-tools","tag-managing-your-cash-flow"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Negative Cash Flow?<\/title>\n<meta name=\"description\" content=\"If your business has negative cash flow, it doesn&#039;t necessarily mean you&#039;re in the red. These easy fixes will help your business get back on track.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Negative Cash Flow?\" \/>\n<meta property=\"og:description\" content=\"If your business has negative cash flow, it doesn&#039;t necessarily mean you&#039;re in the red. These easy fixes will help your business get back on track.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.nationalfunding.com\/blog\/blog\/wp-json\/wp\/v2\/posts\/195668\" \/>\n<meta property=\"og:site_name\" content=\"The Bottom Line by National Funding\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/national.funding\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-20T16:24:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-02T23:14:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/live-nationalfunding.pantheonsite.io\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1439\" \/>\n\t<meta property=\"og:image:height\" content=\"550\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nancy Mann Jackson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NationalFunding\" \/>\n<meta name=\"twitter:site\" content=\"@NationalFunding\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nancy Mann Jackson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/\",\"url\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/\",\"name\":\"What Is Negative Cash Flow?\",\"isPartOf\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg\",\"datePublished\":\"2019-11-20T16:24:49+00:00\",\"dateModified\":\"2022-06-02T23:14:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/ab47ea0172b062f504d67743a44f23fa\"},\"description\":\"If your business has negative cash flow, it doesn't necessarily mean you're in the red. These easy fixes will help your business get back on track.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#primaryimage\",\"url\":\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg\",\"contentUrl\":\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg\",\"width\":1439,\"height\":550},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.nationalfunding.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Is Negative Cash Flow?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#website\",\"url\":\"https:\/\/www.nationalfunding.com\/blog\/\",\"name\":\"The Bottom Line by National Funding\",\"description\":\"Read National Funding&#039;s small business blog for tips and suggestions on how to grow your business by focusing on different aspects of business operations.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.nationalfunding.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/ab47ea0172b062f504d67743a44f23fa\",\"name\":\"Nancy Mann Jackson\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7037ce183e3b47fa3f993f29900f50c411c6013897cc7985246c371d2fcc9438?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7037ce183e3b47fa3f993f29900f50c411c6013897cc7985246c371d2fcc9438?s=96&d=mm&r=g\",\"caption\":\"Nancy Mann Jackson\"},\"description\":\"Nancy Mann Jackson is an award-winning journalist and content marketing writer who specializes in writing about finance, real estate, healthcare, small business and\u00a0human resources. Her work appears in\u00a0publications including CNBC.com, Fortune.com, Entrepreneur, Working Mother, CNNMoney.com, and DailyWorth,\u00a0and she writes for brands including HSBC Bank, Capital One, Glassdoor, Oracle, ADP, Cintas, Staples,\u00a0American Express, Acorns, Hospital Corporation of America and a number of others.\",\"url\":\"https:\/\/www.nationalfunding.com\/blog\/author\/nancy-mann-jackson\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is Negative Cash Flow?","description":"If your business has negative cash flow, it doesn't necessarily mean you're in the red. These easy fixes will help your business get back on track.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/","og_locale":"en_US","og_type":"article","og_title":"What Is Negative Cash Flow?","og_description":"If your business has negative cash flow, it doesn't necessarily mean you're in the red. These easy fixes will help your business get back on track.","og_url":"https:\/\/www.nationalfunding.com\/blog\/blog\/wp-json\/wp\/v2\/posts\/195668","og_site_name":"The Bottom Line by National Funding","article_publisher":"https:\/\/www.facebook.com\/national.funding\/","article_published_time":"2019-11-20T16:24:49+00:00","article_modified_time":"2022-06-02T23:14:24+00:00","og_image":[{"width":1439,"height":550,"url":"https:\/\/live-nationalfunding.pantheonsite.io\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg","type":"image\/jpeg"}],"author":"Nancy Mann Jackson","twitter_card":"summary_large_image","twitter_creator":"@NationalFunding","twitter_site":"@NationalFunding","twitter_misc":{"Written by":"Nancy Mann Jackson","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/","url":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/","name":"What Is Negative Cash Flow?","isPartOf":{"@id":"https:\/\/www.nationalfunding.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#primaryimage"},"image":{"@id":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#primaryimage"},"thumbnailUrl":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg","datePublished":"2019-11-20T16:24:49+00:00","dateModified":"2022-06-02T23:14:24+00:00","author":{"@id":"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/ab47ea0172b062f504d67743a44f23fa"},"description":"If your business has negative cash flow, it doesn't necessarily mean you're in the red. These easy fixes will help your business get back on track.","breadcrumb":{"@id":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#primaryimage","url":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg","contentUrl":"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2019\/11\/restaurantownercheckingm_743033-e1574267047658.jpg","width":1439,"height":550},{"@type":"BreadcrumbList","@id":"https:\/\/www.nationalfunding.com\/blog\/negative-cash-flow\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.nationalfunding.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What Is Negative Cash Flow?"}]},{"@type":"WebSite","@id":"https:\/\/www.nationalfunding.com\/blog\/#website","url":"https:\/\/www.nationalfunding.com\/blog\/","name":"The Bottom Line by National Funding","description":"Read National Funding&#039;s small business blog for tips and suggestions on how to grow your business by focusing on different aspects of business operations.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.nationalfunding.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/ab47ea0172b062f504d67743a44f23fa","name":"Nancy Mann Jackson","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.nationalfunding.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7037ce183e3b47fa3f993f29900f50c411c6013897cc7985246c371d2fcc9438?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7037ce183e3b47fa3f993f29900f50c411c6013897cc7985246c371d2fcc9438?s=96&d=mm&r=g","caption":"Nancy Mann Jackson"},"description":"Nancy Mann Jackson is an award-winning journalist and content marketing writer who specializes in writing about finance, real estate, healthcare, small business and\u00a0human resources. Her work appears in\u00a0publications including CNBC.com, Fortune.com, Entrepreneur, Working Mother, CNNMoney.com, and DailyWorth,\u00a0and she writes for brands including HSBC Bank, Capital One, Glassdoor, Oracle, ADP, Cintas, Staples,\u00a0American Express, Acorns, Hospital Corporation of America and a number of others.","url":"https:\/\/www.nationalfunding.com\/blog\/author\/nancy-mann-jackson\/"}]}},"_links":{"self":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts\/195668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/comments?post=195668"}],"version-history":[{"count":5,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts\/195668\/revisions"}],"predecessor-version":[{"id":206134,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/posts\/195668\/revisions\/206134"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/media\/195666"}],"wp:attachment":[{"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/media?parent=195668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/categories?post=195668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationalfunding.com\/blog\/wp-json\/wp\/v2\/tags?post=195668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}