If you are paying out in expenses more than you are taking in, that's called a loss. Companies that are losing money have to go to one of those financing sources we talked about in order to get the cash to pay their bills. Companies can lose money for good reasons: startups don't have product yet, so there are lots of expenses and no income. Or a company expanding will have to invest in hiring people and new offices in advance of the (hoped-for) increase in income. But there are probably more bad reasons for losses. Products or marketing that suck. Competition that sells stuff cheaper. Crummy service.
Some companies that are losing money try to convince you that everything is ok...
