Cash management techniques are aimed at minimizing the firm's financing requirements by taking advantage of certain imperfections in the collection and payment system.

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Cash management techniques such as delaying payments, accelerating collections, and managing cash balances allow firms to reduce their financing requirements by optimizing their receipts and disbursements. These techniques take advantage of irregularities in payment cycles and fund availability, ultimately helping to improve the firm's cash flow and reduce their dependence on external financing.

Cash Management Techniques Are Aimed at Minimizing the Firm's Financing