Create an example of a situation where there is a negative cash flow.?

Negative cash flow occurs when your business has more expenses than revenue in a set period of time. For example, if your lease, utilities, loan payments, cost of goods, and other costs total $10,000, but your income is only $9,000, then your business has negative cash flow.

Negative cash flow occurs when your business has more expenses than revenue in a set period of time. For example, if your lease, utilities, loan payments, cost of goods, and other costs total $10,000, but your income is only $9,000, then your business has negative cash flow. If your business has negative cash flow, you may need to pull capital from savings or obtain financing to meet business needs.

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