---
title: "Business Cash Flow 101: What it is, and what it isn't"
description: "Business Cash Flow 101: What it is, and what it isn’t"
image: https://blog.cardup.co/hubfs/cash-flow-101-Blog-header.jpg
---

[Skip to content](https://www.cardup.hk/blog/business/cash-flow-101-what-it-is-and-what-it-isnt#main-content)

[![CardUp logo](https://www.cardup.hk/hs-fs/hubfs/carduplogostraightpurple-Cropped.png?width=108&height=33&name=carduplogostraightpurple-Cropped.png "CardUp logo")](https://www.cardup.hk?hsLang=en)

[![CardUp logo](https://www.cardup.hk/hs-fs/hubfs/carduplogostraightpurple-Cropped.png?width=108&height=33&name=carduplogostraightpurple-Cropped.png "CardUp logo")](https://www.cardup.hk?hsLang=en)

[Personal](https://www.cardup.hk/personal/make?hsLang=en) [Business](https://www.cardup.hk/?hsLang=en)

- Solutions 
    - [Domestic payments](https://www.cardup.hk/business/make)
  
  
  
  #### Making Payments
  
    - [Business payments](https://www.cardup.hk/business/make)
    - [Bulk invoice digitisation](https://www.cardup.hk/business/make/feature/invoice-digitisation)
  
  
  
  
  
  
  
  
  #### Collecting Payments
  
    - [Accept credit cards](https://www.cardup.hk/business/collect)
- Use Cases 
    - Payment Types 
          - [Rent](https://www.cardup.hk/blog/personal/paying-rent-with-credit-card)
          - [Supplier Invoice](https://carduphk.zendesk.com/hc/en-us/sections/900000416243-Supplier-available-only-on-CardUp-Business-accounts-)
          - [Payroll](https://www.cardup.hk/blog/business/payroll-payments-cardup)
          - [See all payment types](https://carduphk.zendesk.com/hc/en-us/articles/360036293031-What-can-I-pay-with-CardUp-)
  
  
  
  #### Payment Types
  
    - [Rent](https://www.cardup.hk/blog/personal/paying-rent-with-credit-card)
    - [Supplier Invoice](https://carduphk.zendesk.com/hc/en-us/sections/900000416243-Supplier-available-only-on-CardUp-Business-accounts-)
    - [Payroll](https://www.cardup.hk/business/make/payroll)
    - [See all payment types](https://carduphk.zendesk.com/hc/en-us/articles/360036293031-What-can-I-pay-with-CardUp-)
- Why CardUp?
- Company 
    - [Contact Us](https://www.cardup.hk/about#tagcontact)
    - [Blog](https://www.cardup.hk/blog)
    - [Referral Program](https://www.cardup.hk/refer)
    - [Press](https://cardup.co/press)
    - [Security](https://www.cardup.hk/security)
    - [Careers](https://www.cardup.co/careers)
- [Help Center](https://carduphk.zendesk.com/hc/en-us)
- [Login](https://app.cardup.hk/business/sign_in)
- [Sign Up](https://app.cardup.hk/business/sign_up)

HK

- [Hong Kong](https://cardup.hk?hsLang=en)
- [Singapore](https://cardup.co/)
- [Malaysia](https://cardup.my)

[Login](https://app.cardup.hk/business/sign_in) [Sign Up](https://app.cardup.hk/business/sign_up)

# Business Cash Flow 101: What it is, and what it isn't

[The CardUp Team](https://www.cardup.hk/blog/author/the-cardup-team) Sep 13, 2020, 1:32:00 PM

![cash-flow-101-Blog-header](https://blog.cardup.co/hubfs/cash-flow-101-Blog-header.jpg)

### Contents

[Sep 10, 2020, 1:27:00 PM 5 warning signs of an upcoming cash flow crunch](https://www.cardup.hk/blog/business/warning-signs-cash-flow-crunch/?hsLang=en) [Sep 1, 2020, 12:56:00 PM Here’s how you can fly business class for less than half the price!](https://www.cardup.hk/blog/personal/fly-business-class-for-less?hsLang=en) [Sep 25, 2020, 1:01:00 PM Pay less than half the price for business class company flights!](https://www.cardup.hk/blog/business/half-price-business-class-company-flights?hsLang=en)

- [Tweet](https://twitter.com/share)

Understanding the basics of cash flow, what it is, and what it isn’t, is crucial to setting your business up for success. Business owners may have brilliant ideas but are often hampered by their lack of understanding of how cash flow works, and how it can help or hurt their business.

 

## **What Cash Flow Is**

Cash is the fuel your business runs on, and without it, you can’t operate. You require sufficient cash to make sure you have enough funds to pay bills, payroll, suppliers, and all of the other things that your business requires to stay operational and afloat. Using it wisely will mean the difference between success, or a struggle to get by, week after week, month after month, year after year.

 

## **Bringing Cash In**

![How cash flows in](https://cdn2.hubspot.net/hub/4769873/hubfs/Imported_Blog_Media/flow-in-1024x256.jpg?width=840&height=210&name=flow-in-1024x256.jpg)

You generate the inflow of cash in many ways, and some examples include:

- **Through operating activities**
- **Through investing activities**
- **Through financing activities**

Savvy business owners who optimise their flow of cash adeptly leverage on financing,[particularly their credit cards](https://www.cardup.hk/blog/business/three-reasons-use-credit-card-cash-flow?hsLang=en), to maximise their available cash on hand. Because not all financing options are created equal, they can either be a lifesaver or a debt maximiser. Understanding how to use these options available at your fingertips adeptly can make or break your business.

While many businesses think of loans first when it comes to financing, [36% of small and medium-sized enterprises](https://www.hkpc.org/en/about-us/hkpc-publication/industry-insight/hkma-survey) in Hong Kong find it more difficult to gain bank credit approvals.

An alternative that most business owners often forget about, is that their credit cards are readily-available sources of financing just sitting in their back pockets. For payments that do not typically accept credit cards - such as rental, supplier invoices[and even payroll](https://www.cardup.hk/blog/business/payroll-payments-cardup?hsLang=en) - services such as CardUp allows you to put them on your credit card anyway.

...36% of SMEs in Hong Kong find it more difficult to gain bank credit approvals for business financing...

This unlocks the full potential of your cards, allowing you to extend your payables up to 59 days, interest-free until your next card bill is due. Doing so greatly increases the flexibility of the cash you have on hand, granting you better cash flow management and allowing you to focus on other aspects of your business while making sure your payments get paid on time.

## [![Use your existing credit cards as an interest-free financing tool for your business. Find out more.](https://no-cache.hubspot.com/cta/default/6404518/3affd9f2-f119-4321-9a0d-b9f703b946fc.png)](https://cta-redirect.hubspot.com/cta/redirect/6404518/3affd9f2-f119-4321-9a0d-b9f703b946fc)

 

## **How Cash Flows Out**

![How cash flows out](https://cdn2.hubspot.net/hub/4769873/hubfs/Imported_Blog_Media/flow-out-1024x256.jpg?width=840&height=210&name=flow-out-1024x256.jpg)

As important as understanding how cash flows in, you also need to understand where and how it seeps out, most of the time unknowingly. Some examples include:

- **Through operating activities**
- **Through financing activities**

Cash also flows out when you are required to purchase assets, if your owner or investors withdraw money, as well as in the repayment – plus interest – of any type of financing the business requires. Again, this is where many businesses get in trouble because of their overuse or misuse of credit. The difference between paying an additional 20 percent interest on your credit cards, and utilising it interest-free, can deeply impact your business, so make sure you are acutely aware of the charges you’ll pay and how they’ll compound over time.

---

Cash flow is always a topic that is top of mind for business owners, and big decisions are to be made every day. The more you understand your finances and cash flow, the better prepared you will be when crunches happen, and to take your business to the next step. While this is just a brief introduction of what cash flow is, it still is important and useful to know, no matter how big or seemingly-insignificant the financial challenges may be.

 

[Business Guides](https://www.cardup.hk/blog/tag/business-guides) [Cash Management](https://www.cardup.hk/blog/tag/cash-management)

[Sep 10, 2020, 1:27:00 PM 5 warning signs of an upcoming cash flow crunch](https://www.cardup.hk/blog/business/warning-signs-cash-flow-crunch/?hsLang=en) [Sep 1, 2020, 12:56:00 PM Here’s how you can fly business class for less than half the price!](https://www.cardup.hk/blog/personal/fly-business-class-for-less?hsLang=en) [Sep 25, 2020, 1:01:00 PM Pay less than half the price for business class company flights!](https://www.cardup.hk/blog/business/half-price-business-class-company-flights?hsLang=en)

[Previous 5 warning signs of an upcoming cash flow crunch](https://www.cardup.hk/blog/business/warning-signs-cash-flow-crunch/?hsLang=en)

[Next Paying your insurance premiums with your credit card through CardUp](https://www.cardup.hk/blog/personal/insurance-premiums-credit-card-cardup?hsLang=en)

## Leave a Comment

#### Company

- [About Us](https://www.cardup.hk/important-announcement)
- [Press](https://www.cardup.co/press)
- [Security](https://www.cardup.hk/security)
- [Careers](https://www.cardup.co/careers)
- [Terms of Service](https://www.cardup.hk/homes/terms)
- [Privacy Policy](https://www.cardup.hk/homes/policy)

#### Support

- [FAQs](https://carduphk.zendesk.com/)

#### Make payments

- [Make a business payment](https://www.cardup.hk/business/make)

#### Collect payments

- [Collect business payments](https://www.cardup.hk/business/collect)

#### Payment types

- [Rent](https://www.cardup.hk/blog/personal/paying-rent-with-credit-card)
- [Payroll](https://www.cardup.hk/blog/business/payroll-payments-cardup)
- [Education fees](https://www.cardup.hk/blog/personal/education-fees-with-credit-card-cardup)
- [See all payment types](https://carduphk.zendesk.com/hc/en-us/articles/360036293031-What-can-I-pay-with-CardUp-)

#### Stay connected

<https://www.facebook.com/cardupasia> <https://www.instagram.com/cardup.co> <https://www.linkedin.com/company/cardup/> <https://t.me/cardup_co>

#### Get in touch

**[hellohk@cardup.co](mailto:hellohk@cardup.co)**

 

![carduplogostraightwhite_solid shadow-7](https://www.cardup.hk/hubfs/carduplogostraightwhite_solid%20shadow-7.png)

© 2026 CardUp HK Limited. All Rights Reserved.

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "dateModified" : "2024-10-01",
  "datePublished" : "2024-10-01",
  "headline" : "Business Cash Flow 101: What it is, and what it isn't",
  "image" : [ "https://blog.cardup.co/hubfs/cash-flow-101-Blog-header.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.cardup.hk/blog/business/cash-flow-101-what-it-is-and-what-it-isnt",
    "@type" : "WebPage"
  }
}
```