A business with high liquidity is in a better position to adapt to unexpected financial changes or operate effectively in an uncertain market…
All businesses have had to deal with the impact of the Covid-19 pandemic. Some may have experienced a sharp fall in customers or revenue in a short time. If they had low liquidity, they may have struggled to pay off short-term liabilities. Liquidity is not only needed for your business to survive and grow, it’s also useful if you’re looking for investment, as Angel investors or venture capital firms will often assess a company’s liquidity before making an offer.
