What is Global Cash Flow?
The Short Answer
Global Cash Flow explained simply
When a lender looks at Global Cash Flow, they are not just looking at your business’s finances. They are also looking at your personal finances. This means they add up all the money coming into your business and all the money coming into your personal accounts. Then, they subtract all the debts and expenses from both sides. It’s like looking at one big financial picture that includes everything.
Real-World Example
The Coffee Shop Owner’s Loan
Imagine a coffee shop owner, Sarah, wants a loan to expand. The bank will look at her coffee shop’s profit and loss statements. But they will also ask for her personal tax returns and bank statements. They will see her salary from the coffee shop, any rental income she has, and her mortgage payments. They will combine all this information to see if she, and her business, can afford the new loan.
Why this matters
Global Cash Flow matters because it gives lenders a full picture of your ability to repay a loan. If your business cash flow is tight, but your personal finances are strong, it might help you get approved. It helps lenders make smart decisions about who to lend money to.
Lenders use Global Cash Flow to see the whole financial story. Make sure your personal and business finances are in order before applying for a loan.
Lenders use Global Cash Flow to see the whole financial story. Make sure your personal and business finances are in order before applying for a loan.
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