The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

NEGATIVE CASH FLOW Definition & Legal Meaning

Definition & Citations:

During a specific time period, more cash is going out as expenditure than is coming in as income. Does not necessarily indicate loss, just an timely imbalance. Temporary imbalance is often covered by arranging an overdraft capability. Chronic imbalance, however, leads to loss. Ineffective credit management, fund leakage through fraud, or actual loss are possible reasons.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.