cash on hand

Definition

Funds that are immediately available to a business, and can be spent as needed, as opposed to assets that must be sold to generate cash. The amount of cash on hand determines what projects a company can undertake, or what financial hardships can be absorbed, without going into debt or arranging other financing.

Use cash on hand in a sentence

You should always make sure that you have enough cash on hand to take advantage of a good deal if it comes.

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Business Place, Inc. used cash on hand to make a purchase that required immediate payment, and planned to pay for a larger expense through bank financing.

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Scott made sure that his company always had a certain level of cash on hand. This cash was used for investing and for purchasing additional equipment for his business.

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excess cash illiquidity