Liquidity, cash and working capital are keys to survival and growth of a business. Businesses need to manage their cash and related assets and liabilities in an efficient and cost effective way, in order to optimize liquidity, improve profitability and respond to market conditions in a timely manner.
For a financially distressed company, cash release or preservation may mean survival. For a non-distressed company, cash release can be used to reduce debt, fund growth and investment or provide a better return to stakeholders