accounting
How do T-bills assist a company in meeting its cash management goals?
Is it that they are easier to cash in, their maturity rate is quick, and are issued on a daily basis?
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T-bills can be an effective tool for companies to meet their cash management goals. T-bills are a form of debt instrument issued by the US government that are traded on the open market. T-bills are attractive to companies because they provide a low-risk investment with a guaranteed return on investment and a guarantee that the principal amount of the loan will be returned to the investor at maturity. Companies can also access T-bills with daily, weekly or monthly maturities, allowing them to meet their short-term cash needs without having to commit to a long-term investment. Additionally, they are easier to cash in than other longer term investment options and have lower costs associated with them.
