There are a number of strategies that can be used to retain or increase cash on hand. Some legal and some illegal. Illegally you can retain or increase cash by not reporting how much cash you actually made. However, that would land you in jail. Legally, one way to retain cash is to pay for items on credit therefore leaving cash to be used for more pressing matters. To increase cash one strategy is to pay your bills on time or before time as to not incur late charges. And some bills give you a discount for paying early. In the case of credit cards, if you pay before the bill you will be reported more favorably and it makes it easier to borrow in the future.

Personally I pay my bills early to ensure I do not receive a late charge and I also use my credit card for small items that I can pay off before the end of the month so I have more cash on hand if needed. How this would help business is giving them more cash at the beginning of the month to pay bills and payroll why they collect cash from sells.

Post 2 replies to classmates or your faculty member. Be constructive and professional.