Glossary Term
Cash Flow Management
Definition
Cash Flow Management refers to the process of monitoring, analyzing, and optimizing the inflow and outflow of cash within a business to ensure sufficient liquidity for operations, investments, and obligations. In the MedTech industry, effective cash flow management is critical due to the capital-intensive nature of product development, regulatory compliance, and commercialization.
Relevance to the MedTech Industry
Cash Flow Management ensures that MedTech companies can sustain operations, meet development milestones, and navigate long sales cycles. It supports strategic decision-making for funding allocation, investment in innovation, and scaling production, while minimizing financial risks.
Additional Information & Related Terms
Burn Rate Measures the rate at which a company depletes its cash reserves, influencing cash flow planning.
Runway The length of time a company can operate with its current cash reserves, impacted by cash flow management.
Bridge Loan Short-term funding that supports cash flow during critical financial gaps.
Seed Funding Early-stage capital often used to address cash flow needs during product development.