Cash Inflow - GCSE Business Definition

A cash inflow is money that is received by a business from its various activities, such as sales of goods or services, investments, or financing.

It is an essential component of a business’s cash flow, which helps to ensure the organisation has enough liquid assets to cover its operating expenses, investments, and debt obligations. For GCSE Business students, understanding cash inflow is crucial as it concerns how funds enter a business, allowing it to operate and potentially grow. It is the opposite of a cash outflow, which covers the money leaving the business, and managing both effectively is key for the financial health of any enterprise.