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unit 2
Liquidity
Ways liquidity can be improved
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Cards (4)
How can finished goods be dispatched faster to customers
Reduce
the amount of
stock
How might a business reduce the credit period (an example)
Insist that customers pay in 30
days
not 90
How can liquidity be improved in terms of suppliers
Pay
suppliers
later on agreed credit
terms
How can a business improve liquidity through borrowing
Increase
borrowing
long
term and
clear
the
short
term
debts