Cash gap
A period when money leaves faster than it arrives and your balance goes negative.
Last reviewed 12 September 2026
A cash gap is the stretch between paying your costs and collecting your revenue. Growing companies hit it most often: more sales means more upfront spend, while customers still pay 30 to 60 days later.
The fix is timing, not size. Faster collection, staggered supplier payments, or a small credit line usually closes a gap that looks fatal on a spreadsheet.
Frequently asked
What is cash gap?+
A period when money leaves faster than it arrives and your balance goes negative. A cash gap is the stretch between paying your costs and collecting your revenue. Growing companies hit it most often: more sales means more upfront spend, while customers still pay 30 to 60 days later. The fix is timing, not size. Faster collection, staggered supplier payments, or a small credit line usually closes a gap that looks fatal on a spreadsheet.
Why does cash gap matter for founders?+
The fix is timing, not size. Faster collection, staggered supplier payments, or a small credit line usually closes a gap that looks fatal on a spreadsheet.
Related terms
Cash flow
The money that actually moved in and out of your bank account over a period.
DSO (days sales outstanding)
The average number of days it takes to collect an invoice.
Working capital
Short-term assets minus short-term liabilities — the money running your operations.
Runway
How many months your current cash lasts at your current burn rate.
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