What is cash flow? Why profitable businesses still run out of money
By SendPay Business · · 2 min read
Cash flow is the money moving in and out of a business over a period of time. A business can be profitable on paper and still run short of cash if customers pay late while bills, wages and rent are due now.
Cash flow vs profit
Profit is what's left once costs are taken from sales, whenever the money actually arrives. Cash flow is about timing: whether the money is in the account on the day you need to pay out.
Common causes of gaps
- Customers paying 30, 60 or 90 days after the invoice.
- Buying stock up front before it sells.
- Seasonal dips in sales.
- Big one-off bills, such as tax or equipment.
Ways to get paid faster
Invoice as soon as the work is done, set clear payment terms, and make paying easy with a link the customer can pay by card. Taking deposits up front and sending polite reminders on the due date also help.
Where SendPay fits
SendPay platforms let your customers send invoices, payment links and subscriptions and take the money into GBP, EUR and USD accounts, under your own brand and powered by licensed partners.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How long will my cash last?
Enter your cash, what comes in and goes out each month, and the free calculator shows your cash flow, how many months your cash lasts and your balance for the next year.
Cash flow calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.