Cashintensive

Cashintensive is a term used in business and economics to describe entities, activities, or sectors where cash plays a dominant role in transactions or liquidity management. It is usually applied to operations that receive a large share of revenue in cash, rely on cash for inventory purchases, or maintain substantial cash balances to fund day-to-day activities. The term is often used in contrast with card- or digital-payment driven or asset-light models.

Common cashintensive contexts include small retail shops, restaurants and cafes, street vendors, laundries, auto repair shops, and vending operations, as well as informal or unregulated sectors where cash payments predominate. The profile of a cashintensive business includes higher exposure to cash-handling risk, counterfeit payments, and theft, as well as higher costs for security, counting, storage, and cash-in-transit services. On the positive side, cash can reduce reliance on payment-processing fees and speed up settlements in some environments, while preserving customer privacy and simplicity of transactions.

Managers measure cash intensity through indicators such as the cash-to-revenue ratio and the cash conversion cycle, and by tracking shrinkage and days cash on hand. To operate effectively, these businesses typically implement strict cash-handling policies, secure storage, staff training, periodic audits, and, where feasible, integration with electronic payment options to reduce risk while preserving cash advantages.