Software Licensing Glossary

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Cash Flow

What is Cash Flow?

Cash flow is a term within business and accounting that refers to the inflow or outflow of money for a specific period. For example, if a company uses the subscription pricing model with monthly payments, the money flow that comes in each month will be the combined subscription fee that customers pay. If the company buys a product, that money outflow will decrease the total flow of money for that month. This is because a purchase is a cash outflow. In this example, that cash inflow is also called the Monthly Recurring Revenue (MRR).

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