Cash-focused describes an individual, business, or strategy prioritizing the generation and maintenance of readily available money (cash) over other financial metrics or goals. It emphasizes immediate liquidity, prioritizing short-term gains and the ability to meet financial obligations promptly. This approach often entails rigorous expense management, aggressive revenue generation, and potentially sacrificing long-term investment for immediate cash flow improvements. A cash-focused entity highly values its financial assets.
Cash-focused meaning with examples
- The small business adopted a cash-focused strategy following a period of slow sales. They slashed non-essential spending, negotiated better payment terms with suppliers, and offered discounts for immediate cash payments from customers. This allowed them to weather the downturn and maintain solvency. Their cash reserves became the priority.
- During the economic recession, the bank implemented a cash-focused lending policy. This meant they became more selective in approving loans, prioritizing borrowers with strong creditworthiness and established cash flow. They ensured all loans and investments are secured to increase the safety net of cash.
- The company's turnaround plan involved a shift toward a cash-focused operation. They streamlined operations, divested of unprofitable assets, and focused their marketing efforts on products with high-profit margins and fast payment cycles to create a cash positive result. This was to provide for long-term stability.
- As a cash-focused individual, she meticulously tracked her expenses, avoided unnecessary debt, and consistently sought opportunities to increase her income. This provided her with the financial flexibility to seize opportunities, such as purchasing investment properties and taking calculated financial risks.