How To Manage Your Business's Cash Reserves?

[Good-Person]

Cash reserves is the total amount of funds a company possesses. These funds are reserves of a company that a company may utilise whenever it needs to do so. However, managing the cash reserves may not be that easy at all. So, how do you manage your businesses's cash reserves?

 

[Frank]

I use some of these cash reserves to buy government bonds. These bonds have fixed interest on it and are due within a particular financial year. That is one of the ways that I get to make use of the cash reserves of my company without running at a risk of losing it.

 

[Heatman]

Running a country isn't an easy job and the same thing goes with manging the cash reserve. Some countries doesn't even have cash reserves and that's the reason why they keep borrowing money from international bodies like IMF and so many others for them to keep up.

 

[Kane]

You can maintain a cash reserve for your business when you avoid taking profits and instead saving it on your business bank account. The primary purpose of maintaining a cash reserve is to use the money when you need for improving production line, bringing new products, scaling business, etc.

 

[Good-Person]

Running a country isn't an easy job and the same thing goes with manging the cash reserve. Some countries doesn't even have cash reserves and that's the reason why they keep borrowing money from international bodies like IMF and so many others for them to keep up.

My country is also one of the countries that tend to borrow a lots of money. They do not have money and this is why they overburden the public. Just imagine the government taking loans and the public is the one that pays the loans back. Inflation increases as a result of this.

 

[Heatman]

My country is also one of the countries that tend to borrow a lots of money. They do not have money and this is why they overburden the public. Just imagine the government taking loans and the public is the one that pays the loans back. Inflation increases as a result of this.

I keep wondering why all those international bodies would keep on lending money to countries that are already in serious debt because as far as I'm concerned, they don't meet the requirements of being in a position to receive any other kind of loan since they haven't paid the ones that they borrowed before.

 

[Good-Person]

I keep wondering why all those international bodies would keep on lending money to countries that are already in serious debt because as far as I'm concerned, they don't meet the requirements of being in a position to receive any other kind of loan since they haven't paid the ones that they borrowed before.

Well, there are many countries that are in debt. In fact, you will be surprised to know that even america also owes a lot of money to many international organisations as even america has also borrowed a lots of loans from many organisations. Countries that have borrowed money may still be eligible to pay the loans because they may have enough natural resources to pay the loan back. Perhaps this might be the reason why they get qualified to get a new loan.