If you a small business owner, one of the key focus areas that determine running success is effective cash management. Thanks to public information provided by services like D&B; the interest rate & loan amounts from banks and lending institutions are primarily based on how well your business is able to manage cash.
If you are floating money and creating bad debt all over the place, other businesses will know about it. And managing cash is not just about perennial success, having a healthy cash balance in your balance sheet will also help you demonstrate effective management to potential investors by helping fodder a better valuation of your business. No one wants to buy an unstable company!
Source: https://www.entrepreneurshipsecret.com/effective-cash-management-a-must-have-for-small-businesses/