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Holding Cash
The practice of keeping liquid assets on hand for transactional purposes or as a precaution against unforeseen expenses.
Maturity Matching Principle
This principle suggests that the duration of assets and liabilities in a company's portfolio should be aligned, meaning short-term assets should be financed with short-term liabilities, and long-term assets with long-term liabilities.
Long-term Funding
Financing obtained for a period longer than a year, used for acquiring assets, structural projects, or significant investments.
Short-term Funding
Financing obtained for a period of one year or less, often used to manage the day-to-day operational costs of a business.
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