why is cash considered a negative debt?
Hello WSO community, I was asked to write an essay on why cash is considered negative debt. Do you have any suggestions?
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Because you can use your on-hand cash balance to pay down debt if needed therefore your debt balance isn’t as large as if you didn’t have any cash
Barney explained it right - on the other side of the coin (I'm a lender) I'd challenge you to consider reasons why lenders such as myself don't like to consider cash on hand as an offset to debt.
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