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If a company does not have any, or not enough, excess cash they may need to consider short-term financing to augment their supply. How they choose which financing to use is often more complicated then deciding whether or not they need it.
Managing Cash
Cash management in handled though the cash-flow cycle. This cycle relies on when and how funds are collected as well as paid out and how fast the banking system is (Block and Hirt, 2004). For instance if a supplier cashes a check too soon, and the bank is slow to process checks from customers, there may be a negative balance of cash in the company's account...
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