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Liquidity Management: What it actually means?
Liquidity management ensures an organisation has enough cash and available facilities to meet its obligations as they fall due, without holding excessive idle funds. Consultants forecast cash flows, analyse working-capital drivers, review funding lines and covenants, and design policies for collections, payments, inventory and treasury investments. They may also model stress scenarios to test resilience. This is especially important in higher-interest or uncertain environments, or ahead of large capex and M&A. Strong liquidity management protects solvency, reduces financing costs and gives management confidence to pursue growth.
