Operating cash flow vs. profit
Profit on your P&L isn't the same as cash. Loan principal, owner draws, inventory and slow receivables all use cash without showing as expenses. Lenders care about cash available to repay debt.
Run the numbers
Build-out, equipment, deposits, licenses, opening inventory.
Be conservative for the first 6 months.
Rent, payroll, software, insurance, owner draw.
Runway
7.5 months
Cash after launch
$45,000
Monthly net
-$6,000.00
6–12 months
Planning estimate only. Most lenders look for operating history; new businesses often rely on owner equity first.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a financing specialistCommon questions
What's net cash flow?
Total cash received minus total cash paid out in a period.
How is this used by lenders?
They compare cash available for debt service with loan payments (DSCR).
How much cushion should I keep?
Many owners aim for several months of fixed costs; it depends on how predictable revenue is.