In Policy Stack, cash flows are individual monetary events associated with a capital deployment — payments received, principal returned, expenses incurred, or capital restored to a policy loan.
Cash flows are recorded per deployment as the activity occurs. Examples:
- A monthly rent payment received from a rental property
- A promissory note payment received from a borrower
- A loan repayment event (paying down a policy loan with deployment proceeds)
- A lump-sum return of principal at deployment maturity
Cash flows build the historical record of how a deployment has performed and feed into the banking ledger — the log of all capital events in your banking system.
The Income Stacker tool projects note payments and the policy loans that fund them, starting from your recorded notes.
In Policy Stack, cash flow direction (in or out) is displayed neutrally — no red or green coloring is applied to indicate whether a flow is "good" or "bad." Capital events are recorded factually.
Related terms: Capital Deployment, Promissory Note, Income Stacker