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Cash Flow Loan

   Also found in: Wikipedia 0.01 sec.
Cash Flow Loan
Borrowing cash typically to meet day-to-day operations or acquisitions. Reasons for needing a cash flow loan could be seasonal-demand changes, business expansion or changes in the business cycle.

Notes:
Cash-flow loans can help in temporary situations, but if cash flow problems persist then companies need to improve their cash conversion cycle and get customers to pay faster.


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In combination with funds lent on assets, the senior stretch product rewards companies with strong cash flows by providing a highly versatile structure that is generally priced lower than a pure cash flow loan.
Under the cash flow loan program, the treasurer can reject a district's loan application, set the loan amount, and control the amount and timing of each district's periodic drawdowns.
While the county appears to have addressed its cashflow emergency, at least in the near-term, with the use of a line of credit and measures in its 2005 fiscal year, repayment of the cash flow loan will apparently be stretched over several fiscal years and a long-term cash flow solution remains unclear.
 
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