Low-risk Liquid Investment
A well-run business tends to have excess cash which can be put to work in a low-risk, highly-liquid investment. Efficient deployment of excess liquidity helps the business to generate additional income, which can amount to a decent sum in a rising rate environment.
However, businesses need to be extra selective, to only invest in low-risk, highly-liquid investments because the funds may be required at any time on short notice for business requirements.
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