Introduction of new loan or owner capital (funds)

Achieve a positive cash effect without going near our P&L

This is, for a change a positive cash effect that not go near our P&L.

This is an injection of cash either from a bank or from the owners.

It can enter the business as a director loan (my preferred route) or an increase in owner’s equity.

For the moment it is only important to understand that this will positively affect the cash flow while having no direct immediate effect on the P&L.

Cash goes up, profit or loss does not move. It is a balance sheet item.