How does my business's cash flow impact its ability to obtain financing?

Cash flow is a critical factor in a lender's decision to provide financing to a business. Lenders want to see that a business has a steady and predictable stream of cash inflows that will allow it to repay the loan on time. If a business has poor cash flow, lenders may view it as a highrisk borrower and be reluctant to provide financing. In contrast, businesses with strong cash flow are more likely to be approved for financing and may be able to negotiate better terms and lower interest rates.