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Glossary term

Cash Flow Projection

Definition

A cash flow projection is an estimate of the money you expect to come in and go out over a period, like a season or year.

Technical definition

A cash flow projection is a forward-looking statement estimating the timing and amount of cash inflows and outflows for an operation over a defined period.

Why it matters

Lenders use projections to judge whether an operation can cover its expenses and loan payments. Realistic numbers strengthen an application.

Example

A projection might show input costs in spring, a loan payment mid-year, and crop revenue in fall.

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