What is ‘Inbound Cash Flow’
Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow can include sales revenue generated through business operations, refunds received from suppliers, financing transactions and amounts won through legal proceedings.
Explaining ‘Inbound Cash Flow’
Any positive cash additions to an entity’s bank account. When a salesperson is paid from their employer for their time spent working, this an inbound cash flow for the employee. Conversely, this payment to the employee represents an outbound cash flow for the employer. When the salesperson successfully completes a sale to a customers, this represents and inbound cash flow for the company.
As well, consider a company going through a round of debt financing. When a company issues bonds, they are borrowing money, which will need to be repaid in the future (with interest). However, at the time the bond is sold, the company receives the cash, which makes it an inbound cash flow for the company. When the bond is later repaid, this is an outbound cash flow for the company.
Further Reading
- Shifts of Chinese government policies on inbound foreign direct investment – miami.pure.elsevier.com [PDF]
- An Organization's Cash Flow Management in Digital Economy – www.atlantis-press.com [PDF]
- Cash‐to‐cash: the new supply chain management metric – www.emerald.com [PDF]
- German Inbound Investment, Corporate Tax Planning, and Thin Capitalization Rules-a Difference-in-Differences Approach – papers.ssrn.com [PDF]
- An empirical examination of project contractors' supply-chain cash flow performance and owners' payment patterns – www.sciencedirect.com [PDF]
- Revisiting and reinforcing the Farmers Fox theory: A study (test) of three cases in cross-border inbound acquisitions – mpra.ub.uni-muenchen.de [PDF]
- Is SAFE Safe Now-Foreign Exchange Regulatory Control over Chinese Outbound and Inbound Investments and a Political Economy Analysis of Policies – heinonline.org [PDF]
- An Endogenous Approach to the Cyclicality of R&D Investment under Credit Constraints: Firms' Cash Flow Matters! – www.mdpi.com [PDF]
