Understanding Business Statement of Cash Flows

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Understanding Business Statement of Cash Flows

• Small Business Cash flow

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Heres a quick summary

• A business statement of cash flow is a financial
  analysis of the companys operating, investing,
  and financing activities.
• This document summarizes how efficient a
  companys operations and strategy are at any
  given time.
• Operating cash flow is a comparison of a
  companys incoming and outgoing transactions.
• Cash flow statements are commonly used by small
  business owners, lenders, accountants, and
  investors to evaluate a businesss financial
  health.
• These financial statements can also be used to
  understand cash generation, determine future
  business strategy, and assess the companys
  ability to meet financial obligations.

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What is a Statement of Cash Flow?

• A business statement of cash flow, also known as
  a cash flow statement, is a standard summary
  showing a companys free cash flow, both incoming
  and outgoing, over a defined period of time.
  Generated by nonprofit organizations and
  for-profit businesses alike, this document
  provides an at-a-glance summary of the companys
  liquidity, solvency, and overall financial health
  to business owners, lenders, and other interested
  parties.

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Ways to prepare a cash flow statement

• Two methods can be used to prepare a business
  statement of cash flow. Both methods are
  recognized by the standardized accounting
  industry guidelines, or Generally Accepted
  Accounting Principles (GAAP).
• Direct method This method shows cash activity
  by listing the total cash coming in and going out
  of the business, and calculates cash flow by
  subtracting outflows from inflows. The direct
  method requires accounting software or manual
  internal processes to track cash receipts and
  payments.

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• 2. Indirect method This method shows cash
  outflows as they relate to profit, providing
  users with a reconciliation ratio of cash flow to
  net income. This method also factors depreciation
  for fixed assets, non-cash items, and capital
  expenditures like real estate and equipment
  into the presented cash flow.
• Cash flow statements are typically generated
  monthly, quarterly, or annually depending on
  their use.

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What is a Business Line of Credit?

• First off, what exactly is a business line of
  credit? This flexible funding solution is a cross
  between a small business loan and business credit
  card. Once approved, a small business owner will
  have access to a maximum credit line upon which
  you may draw cash to make business purchases or
  fund operating expenses like payroll or rent.

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What Are the Business Line of Credit
Qualification Requirements?

• Business lines of credit are offered by many
  traditional and online lenders. They tend to be
  much easier to qualify for than term loans,
  making them a suitable source of financing for
  small business owners who cannot otherwise
  qualify for funding. That includes business
  owners with bad credit, startups, and established
  businesses that earn only small profits.

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Understanding Business Line of Credit
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How to Apply?

• Step 1 Fill out the small business loan online
  application.
• Step 2 Submit required documents (e.g.,
  financial records, business plan).
• Step 3 Get approval and access funds within 48
  hours.
• Step 4 Use funds to grow your franchise business.

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Eligibility Criteria
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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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• Thank You