Why cash remains the king in business transactions


There is a well-known phrase- ‘Old is Gold.’ We became so accustomed to the digitized world that we almost forgot about cash and its value. As time passes, the need for cash, its importance, and the goodwill has remained constant for all those years. We accept that there are several payment methods, and smartphone users are using it with ease. However, when it comes to huge business transactions it limits the utility of payment methods.

In this blog, we will discuss how cash and its utility is dynamic and evergreen. How it is a strong pillar in categorizing or measuring the progress in an economy. How cash has become so underrated that we hardly think about it, but it is on the top of the game and several other critical aspects.


Is cash on track?

Traditionally, cash is the ‘king’ in business transactions because of some crucial reasons.

  • Cash transactions are the easiest way to incorporate within the economy. No businesses would want processes that impact their huge turnover or stall their business. However, online payments prove to be troublesome due to technical concerns. No entrepreneur wants to deal with scenarios that put their business on halt, which has led to universal acceptance of cash.
  • With the use of cash transactions, the chances of an immediate settlement gets high. Cash is a real-time transaction that allows immediate funds to be transmitted to the recipient. However, in an online version, instant liquidity isn’t always an option. Therefore, cash is a more versatile alternative.
  • Cashing does not challenge your security and privacy. Cash is a tangible commodity that doesn’t require for anyone to seek your personal or financial information to complete a transaction. Additionally, it saves up a lot of time that people spend on the registration process.
  • Compared to credit cards and electronic transfers, cash transactions do not involve any type of transaction fees.
  • Cash transactions are independent and do not rely on any technology. Cash transfers ensure the smooth running of business transactions.

However, we understand that due to the increased popularity of digital payment modes, the dominance of cash transactions has been challenged. But that does not mean cash has grown insignificant or can be replaced.

How has cash become a strong pillar in supporting a business?

Here is the list of some of the strong reasons which justifies why cash is a strong pillar for building a smooth running business.

  • Instant cash settlement saves a lot of time by means of real-time transactions. The payment occurs easily between both parties.
  • Cash enhances credibility in the market. It builds trust and reliability that can create strong business relationships. It helps businesses grow when a few trustworthy hands join together. Cash also extends a tangible and viable proof which induces a sense of security for the seller.
  • Businesses try to save money spent on additional fees by endorsing cash payments. In this case, physical transactions are helpful because they have low or no transaction fees, processing fees, merchant fees, or interchange fees.
  • Cash brings flexibility and accessibility to the market. It introduces a proper flow of funds into the business which raises efficiency and gains. Additionally, there are no complex technologies and the associated risk is also less.

How cash has become so underrated that we hardly think about it

The answer is simple: Due to the rapid acceptance of digital payment methods, cash now has become the ‘unsung hero’. Although, the digital payment verse has significantly shifted the consumer trend.

Although the consumer, the soul of any business, prefers to go cashless, as far as businesses are concerned- huge transactions are still operating with Cash. We don’t know what the future holds but this will remain unchanged.

Why is cash still at the top of the game?

In the world of digitalization, scams are also increasing at an alarming rate. In this scenario, talking about cash and its importance helps us understand how it reduces the chances of theft and frauds. Here are the reasons why cash remains the king in business transactions.

1.    Enhancing your ability to make money

Business growth is directly proportional to liquidity. It means the chances of liquidity are high when businesses prefer cash transactions over digital payments. However, several businesses promote digital payments for the customer’s ease. But, for their ease, they are still doing cash transactions to retain liquidity.

In simple words, when a person possesses cash, it allows them to make more out of it. A real-life example is Covid, when various assets were underpriced. As a result, investors who had cash available with them could grab the opportunity and purchase those assets at a low price. Moreover, having cash handy also increases convenience.

2.  Meeting unplanned emergencies

Many times, businesses meet unplanned emergencies, and they need excess funds. These unplanned emergencies could be sudden drop in sales, customers going bankrupt or being unable to pay their bills, disruptions in the supply chain, unexpected expenses, natural disasters or accidents, regulatory modifications, scams, and economic downturns.

All of these problems have one solution i.e. ‘cash-in-hand.’ When a business has acquired smooth liquidity, they can overcome all these hurdles with strategic planning. Businesses can hold on to upcoming opportunities and raise their bar.

3. Low Risks and Losses

Businesses try to set up income modes from different threads. They streamline their cash processes by investing in commodities that can provide them immediate withdrawal. Looking at the present market volatility, some investments are very likely to incur losses. However, cash increases the chances of revising your strategy and investment plans by accessing quick withdrawals and reducing the possibility of loss.

4. Survival through an economic downturn

It is true that customers deem cashless transactions to be hasslefree, but as far as businesses are concerned they cannot depend on it. A live example from Covid-19 is when various businesses were shut down, revenues dropped, people lost jobs, and faced cut-offs but the expenses kept coming in.

Narthan Verdi wrote a quote about this situation that says ‘Cash was the king in the Coronavirus times.’ The nature of the economy is a fluctuating one, sometimes due to lack of funds, demand and supply, and many other factors that result in the economy’s downturn. When a recessionary period arrives, businesses cannot take a U-turn on their fixed expenses like mortgage or rent, insurance, loan payments, and utility bills.

5. Paying bills without debts

Purchasing on credit ‘haunts’ me at a personal level. I feel I can make the payment in cash and improve my financial health rather than jeopardizing it.

Our team of experts believe in the same principle. For businesses, it is of huge importance that they promote cash transactions to avoid further billing fees.


In this blog, we covered all the essentials on why one needs to incorporate cash within the system. We hope this article will help grow your business. Thriving a business is a challenging task, but if you could shift your operations to cash-based transactions, it could improve the liquidity, security, stability, and other crucial aspects of your business.

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