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Definition
A business's cash position is the amount of cash and readily available funds it holds at a given moment — its bank balances plus any facilities it can immediately draw, less any cash already committed. It is a snapshot of liquidity right now.
In plain terms
Your cash position is what you could actually pay out today if you had to. It differs from profit, from turnover, and even from your balance-sheet cash if some of that is spoken for or a facility is available on top.
Why it matters
Knowing your true cash position — not just the headline bank balance — is the starting point of every cash decision. See liquidity.
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Read →Funding for UK limited companies
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