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And one of the big benefits for companies who chose to use these strategies is that it actually saves them money. Many of these processes are cheaper to use then the old way of doing things. (Block and Hirt, 2005)

And the last method of cash management is by using securities that can be quickly and easily converted to cash...

Companies often times take excess cash that they have and invest it in these sort of short-term securities. The big issue that management constantly looks at is the quickness these investments can be converted back into cash so they do not get stuck with insufficient cash forcing them to deal with short term financing, which often times is expensive

When companies misappropriate their cash holdings and invest in investments that are not liquidable enough for the company they often times must resort to short-term financing...

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