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How to improve liquidity?
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25th Nov 2009 by Amelia Timbers
You can improve liquidity by reducing debt and/or increasing assets. Liquidity gets at a firm or individual's ability to pay off debt rapidly. Thus, either a reduced debt burden or increased cash flow addresses this problem. Less borrowing, more saving, debt consolidation for a lower interest rate, paying off short term debt, more cash inflow and more sales are all ways to increase liquidity.
You can improve liquidity by reducing debt and/or increasing assets. Liquidity gets at a firm or individual's ability to pay off debt rapidly. Thus, either a reduced debt burden or increased cash flow addresses this problem. Less borrowing, more saving, debt consolidation for a lower interest rate, paying off short term debt, more cash inflow and more sales are all ways to increase liquidity.
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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
24th Nov 2009 In Business
1 Answers | 183 Views
Subjects: liquidity,
