negative cash position
[ˈnɛɡətɪv kæʃ pəˈzɪʃən]
nounpl: negative cash positions
posição de caixa negativa
1. A financial situation where a company or individual has more financial obligations and outflows than available cash reserves, resulting in a deficit
The startup faced a negative cash position after unexpected expenses exceeded their quarterly revenue.
A startup enfrentou uma posição de caixa negativa após despesas inesperadas excederem sua receita trimestral.
2. A state in which cash outflows exceed cash inflows over a specific period, indicating potential liquidity problems
Management warned investors about the company's negative cash position and outlined a recovery plan.
A administração alertou os investidores sobre a posição de caixa negativa da empresa e apresentou um plano de recuperação.
This term is critical in both Brazilian and American business contexts, particularly in corporate finance, startups, and banking sectors. In Brazil, discussions about 'posição de caixa negativa' are common during economic downturns and are closely monitored by regulatory bodies like the Central Bank (Banco Central do Brasil). In the USA, negative cash positions are closely scrutinized by creditors, investors, and can trigger covenant violations in loan agreements.
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