Short-term Liquid Assets Management Issues

In managing short-term liquid assets, management must:

• consider the effects of seasonal cycles on the need for short- term investing and borrowing as the business’s balance of cash fluctuates,
• establish credit policies that balance the need for sales with the ability to collect, and
• assess the need for additional cash flows through the financing of receivables.

• Discounting as Method of Financing Receivables
• Factor
• Factoring