Cash is the coins, currency, checks, and bank account balances held by a firm. Near cash items such as marketable securities or bank-time deposits are also included in the concept of fast cash advance. Cash is the most important current asset for the operation of the business. It is the basic catalyst needed to keep the business running continually. It is also an ultimate and important output expected to be realized by selling the product manufactured or the service rendered by the firm.
Fast cash advance is the most significant and at the same time least productive asset held by the firm. It is used to pay the firm’s obligations. It is difficult to predict cash flow accurately. No perfect relationship exists between cash inflows and cash outflows. Cash constitutes the smallest portion of the total current asset, yet management’s considerable time is devoted in managing it.
Cash management cycle is a cycle of generation of cash flows from various sources and disbursement of cash to meet various expenses. According to this cycle, the amount of cash generated through sales should be used to make payment for the purchase of goods etc and for the payment of various expenses. Borrowing is resorted to when there is deficit (excess of cash payment over and above the cash collections). Similarly excess cash is invested in high yielding liquid assets.
To enhance the efficiency of fast cash advance, collections and disbursements must be properly monitored. Often there is a time lag between the dispatch of goods or provision of service and the sending of bills. By preparing and sending the bills promptly, a firm can ensure early remittance. It should be realized that it is in the area of billing that the company’s control is high and there is a sizeable opportunity to free up cash.
Fast Cash provides detailed information about fast cash, bad credit fast cash, fast cash advance, fast cash leasing and more. Fast Cash is the sister site of Cheap Payday Advance.
Source: www.articlealley.com
