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Policy report

Cash is king: water flows long, balanced gentle foaming at the mouth

For most small businesses, cash reserves to meet the liquidity demand of important tools. Provides a ready means cash reserves to pay employees and suppliers in normal circumstances, the important buffer and in bad times for reference. This is a small business is difficult to obtain credit and other sources of liquidity in particular. In other words, cash reserves is the key to a small business vitality and safety measures.

In small business department was set up in this report, LC capital by institute of cash inflows and outflows and balances the lens to explore small business financial life. We found that even though the importance of cash reserves, most small businesses cash reserve level, will provide a significant recession or other damage in the face of a cushion. Used by small businesses from February 597000 to October 2015, more than 4.7 million deal to build a new data assets, our analysis suggests that half of all small businesses cash buffer is large enough, to support their typical outflow 27 days.

The report also discusses the characteristics of key industries, help explain the cash buffer driver. In addition, it provides the public data of the new synthesis, began to draw up a comprehensive view of small business department.

These results are relevant decision makers who seek help small businesses; Coach small business owners of non-profit organizations; Financial services company, to help small businesses to manage liquidity; And who seek guidance benchmark manage their liquidity, small business owners.

We want to note the report cash balance is an important problem, help people better understand the difference between small businesses, as well as the more intelligent solutions, products and policies, making the development of the small business booming.

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