👉 The assurance fluid, also known as assurance liquid or assurance liquidity, is a financial instrument used to ensure the availability of cash or liquid assets in a company's balance sheet. It acts as a buffer, providing a readily accessible source of funds to meet short-term obligations and maintain operational stability, especially during periods of financial stress or unexpected liquidity needs. Unlike traditional short-term investments, assurance fluid is often held by financial institutions or specialized entities and is designed to be highly liquid and easily convertible into cash, minimizing risk while enhancing a company's financial flexibility and resilience.
