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From Cellbe

payday loans is the at and most critical the same time least productive asset held by the firm. Its used to pay the firms obligations. It is hard to predict cashflow accurately. No ideal relationship exists between cash outflows and cash inflows. Money constitutes the smallest portion of the whole current asset, yet managements lots of time is devoted in handling it. Money management cycle is a period of generation of cash flows from various sources and disbursement of money to meet various expenses. Based on this period, referenced here generated through sales should be used to make payment for the payment of various bills and for the purchase of goods etc. Borrowing is resorted to when there is deficit (excess of money payment over and above the cash collections). Also excess income is committed to high yielding liquid assets. To boost the performance of fast money, payments and collections should be properly administered. Often there is a time lag between the dispatch of products or provision of support and the sending of bills. By preparing and sending the bills promptly, a firm can ensure early remittance. It should be understood that it is in the part of payment that the companys management is large and there is a significant chance to free up money.