Liquidity is the working capital needed for the cyclical turnover of production and trade, while wages belong to fixed capital or fixed assets. The monthly salary paid to employees is the sum of the actual number of people working in this position multiplied by everyone's quota, so it is not.
The role of liquidity is mainly reflected in the following aspects:
1. Meet the daily business needs of enterprises: working capital is mainly used for daily business activities such as paying wages, purchasing raw materials and paying taxes. With sufficient liquidity, enterprises can ensure the smooth progress of daily operations and avoid the impact of capital shortage on production or sales.
2. Maintain the corporate reputation: timely payment of wages and loans and timely repayment of short-term loans will help maintain the corporate reputation and improve borrowing capacity. Enterprises with abundant liquidity are more likely to gain the trust and support of financial institutions such as banks.
3. Ensure the solvency of enterprises: The use and management of working capital is very important to ensure the solvency of enterprises. Enterprises need to reasonably arrange the use of working capital to ensure that they can repay short-term debts in time and avoid financial risks.
4. Promote the sustainable development of enterprises: Adequate liquidity will help enterprises seize market opportunities, expand their business and enhance their competitiveness. The rational use and management of working capital is helpful for enterprises to achieve sustainable development.
5. Improve the enterprise's ability to resist risks: In the face of market risks and uncertainties, adequate liquidity will help enterprises cope with emergencies and risks and ensure the steady development of enterprises.
To sum up, working capital plays an important role in the daily operation, reputation maintenance, solvency, sustainable development and risk resistance of enterprises. Enterprises should reasonably arrange and manage liquidity to ensure the normal operation and sustainable development of enterprises.
Legal basis:
Measures for the administration of working capital loans
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In order to regulate the operating behavior of working capital loan business of banking financial institutions, strengthen the prudent management of working capital loans, and promote the healthy development of working capital loan business, these measures are formulated in accordance with the Banking Supervision Law of the People's Republic of China, the Law of People's Republic of China (PRC) Commercial Bank and other laws and regulations.
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The term "working capital loan" as mentioned in these Measures refers to local and foreign currency loans issued by lenders to legal persons or non-legal organizations for the daily operation and turnover of borrowers.