Benefits Of Having Cash

You can definitely take care of your current liabilities

. Second, there are several suppliers who are willing to give you discounts if you just pay them in cash. This will definitely help you save hundreds of dollars when it comes to your raw materials or supplies.

The business owner is a person who can actually come up with a business and generate unlimited cash flow with the least amount of supervision. This is the route that everybody wants to take and I believe you should too simply because you have more control of your money, time, and effort. However, you need to keep in mind one thing: not all business owners are successful. Taking a high-risk venture offers no sure guarantee because it needs huge amounts of capital, high turnover rate, and it has the biggest chance of failing.

I've heard a lot of promising businesses stories that aren't able to take flight simply because they lacked the financial capital. A great example of this situation would be the story of my wife's friend Ruby. For the last two years, they've been engaged in a handicrafts business, selling their products to different international clients. Because of the rising demand, though, they have to put off production for a while since they need to look for additional financial sources. Their cash, on the other hand, has been used to purchase equipment that they needed for manufacturing. Added to that, there were some customers who didn't pay up anymore.

Cash is very liquid, which means you will be able to convert it into anything. One of these is investments. If you have some money with you, you will be able to acquire some properties, like machineries, as investments to your company. These could be tangible items, but they can add more value to your business.

Most of all, cash can give you better credit score. You simply don't have any idea how many businesspersons these days could no longer avail of a decent loan because they don't have a good credit standing. They either get denied, or they have to pay up a very high interest. They also have shorter payment terms, and they couldn't obtain the amount that they wanted. When you have some cash with you, you can very well pay your accounts on time. There's no way you can tarnish your credit standing with that one.

by: Lawrence Perry

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