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Difference between cash flow and profit

You might think that cash flow and profit are the same terms that can be used interchangeably. They are indeed the key aspects of a business but they represent two different financial parameters. Business can have a positive cash flow but no profit or it can have large profit but negative cash flow. How is this possible? Cash flow is exactly what the name says, the way cash flow trough business,its inflow and outflow. Companies use it to meet current and near-term obligations. If company has a negative cash flow in the worst case scenario it can lead it bankruptcy. Positive cash flow means that business can always pay suppliers, meet payroll, purchase inventory, pay taxes and other expenses. Conserving a cash flow is one of the most important features of a good business. It takes time and planning, sometimes even professional assistance. Profit, also called net income is a difference between gross income and expenses. When you subtract your expenditures from your s...

Equity financing

When it comes to funding businesses equity financing is one of the options. It means raising capital through selling shares of a company. Equity financing is different from debt financing where you company gets a loan and promises to repay it with interest. It comprises a wide range of activities in scale and scope, as a form of close partnership, crowdfunding platform to initial public offering. Money raised trough equity financing might be used  to fund short terms needs of the company as well as the long term expenditures. Even though it is most often associated with public companies listed on exchange, private companies use equity as a means of financing. Equity financing includes different types of stock from proffered stock,   preferred convertible shares to common stock. Start-up companies often need financing to set their business in motion but because they carry a good amount of risk are not always able to get a financi...

Fast Funding for your Business

LINE OF CREDIT Quick access to revolving line Credit lines up to $250,000 Only pay for what you use Funds replenish as you pay back No prepayment penalties INVOICE FACTORING Turn unpaid invoices into cash Credit lines up to $5 million Fund only the invoices you want Financing that grows with your business No long-term contracts Get peace of mind when you partner with Emry Capital Easy to get started - Emry Capital makes business funding quick and painless. Apply online and get approved in fast as 20 minutes. Flexible by design - Use your available credit line when you want, for any business need. Enjoy no long-term contracts or prepayment fees. Dedicated advisors - Our advisors are available to walk you through the process and help you obtain the funds you need. "When you run a business like ours, you need the extra cash for backup. I tried our bank and went through all the trouble just to be told we had to wait. Emry Capital has been a great partner to u...