maintain liquidity

How to Maintain Liquidity?

Maintaining liquidity involves several strategies:
1. Cash Flow Management: Effective cash flow management ensures that a business can meet its short-term obligations. This includes timely invoicing, managing accounts receivable, and negotiating favorable payment terms with suppliers.
2. Asset Management: Liquid assets, such as cash and marketable securities, should be managed effectively to ensure they are readily available when needed.
3. Short-Term Financing: Utilizing short-term financing options, such as lines of credit or business loans, can provide quick access to funds during liquidity crunches.
4. Inventory Management: Keeping inventory levels optimal can free up cash that would otherwise be tied up in unsold products. This can be achieved through just-in-time inventory systems and regular inventory audits.

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