Your sources of cash used to purchase today’s assets and pay yesterday’s operating costs shape how you get to make business decisions going forward. This is particularly true every time you use investors’ money, who expect a return, and creditors’ money, who expect to be paid back with interest.
The only way to keep investors and creditors happy is to ensure you generate sufficient money from operations to pay your cash flow obligations.
Cash Flow Funding options represent the source of money used in a business to fund its operations and asset purchases. The primary sources of cash flow are monies collected from operations, investment money, and financed money through leases, loans, or a line of credit.