The saying “cash is king” is a common phrase used in the financial world. It means that cash (or liquid assets that can be easily converted into cash) are the most valuable assets to have, especially in times of uncertainty.
The origins of the phrase are not clear, but it has been used in the financial industry for decades. Some attribute the saying to the world of real estate, where cash buyers have an advantage over those who require finance. Others attribute it to the stock market, where companies with a lot of cash on hand are considered to be in a stronger financial position than those with a lot of debt.
The phrase has also been used in the context of business and entrepreneurship, where having cash on hand can provide a competitive advantage. Cash can be used to fund new projects, make acquisitions, or weather economic downturns.
It was popularised after the stock market crash of 1987 by the CEO of Volvo.
Overall, the saying “cash is king” highlights the importance of having cash or liquid assets available to use when needed. It emphasizes the value of financial flexibility and the ability to respond to unexpected challenges or opportunities.
In our world, helping small business raise commercial finance, it often comes up when talking about the importance of businesses having working capital, and being able to arrange facilities for them to have the funds available to achieve their objectives.
