Cash Flow

Cash Flow in foreign trade specifically refers to the inflows and outflows of cash and cash equivalents of an enterprise within a certain period, reflecting actual payment and receipt capacity rather than book profit. Usage scenarios include: evaluating capital turnover during order execution, collection cycles under settlement methods such as letters of credit/collection/telegraphic transfer, and account period pressure brought by open account (OA). Notes: Foreign trade cash flow is greatly affected by exchange rate fluctuations, tax rebate delays, and transportation cycles, and must be distinguished from profit—high profit but cash flow rupture can still lead to bankruptcy; unlike 'working capital', cash flow emphasizes dynamic inflows and outflows, while working capital is a static net amount. Difference from 'accounts receivable': accounts receivable are uncollected claims, while cash flow is actual receipts and payments. It is recommended to optimize cash flow through tools such as advance payment, letters of credit, factoring, and forfaiting.