negative cash flow(redirected from Negative Cash Flows)
Negative cash flow
Occurs when spending in a business is greater than earnings.
Negative Cash Flow
A situation in which a company is spending more money than it is receiving. While this is common in many companies, especially in the first year or two of operation, it is obviously unsustainable in the long-term. A company with a negative cash flow often has to resort to loans or equity financing in order to keep its doors open.