Contingency finance - Planning for the unexpected by either keeping a cash cushion in the firm’s current account or keeping an overdraft facility little-used, Liquidity - The ability of a business to pay its bills on time, which all depends upon having enough cash in the bank, Working capital cycle - how long it takes for a complete cycle from cash out (buying stock) to cash back in from a customer payment. It could vary from one day (for example, a fruit and veg stall) to one year (for example, a house builder),

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