Difference between funds and cash


Both cash and funds are used for money used or exchanged in financial transactions. Please note, however, that they have slightly different meanings.

The terms "funds" is an elegant legal term for a sum of money available for a certain purpose.

the term "cash" refers to money in liquid form ready to be paid. It does not only include physical cash but also bank deposits or other forms of money that are freely avaiable to be used.