Close X

Burn Rate

Burn Rate

  • Term

    Main definition

  • Burn Rate

    The monthly negative cash flow of a business that experiences negative cash flows (which almost always refers to start-ups and early stage companies with little or no revenues), after crediting the revenues from operations, if any, over the same monthly period.

    Burn rate is expressed on a monthly basis and is related to the amount of runway the business has before it needs additional financing or revenues.

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions regarding business law, corporate compliance, and other important legal matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment!