Business Pitch Dictionary by pitch.dog
Cash flow & liquidity · Working

Liquidity buffer

Also called: liquidity reserve

ELI5

Cash or committed funding held to absorb shocks or timing gaps.

Used in conversation

“Compare liquidity buffer with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Liquidity buffer” in financial models, budgets, board packs and investor materials when the discussion reaches cash flow & liquidity.

Why it matters: In cash flow & liquidity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 4

Direct term-level sources and supporting source families.