Nobody downloaded yet

Various sources of short-term finance - Assignment Example

Comments (1) Cite this document
Summary
This article discusses various sources of short-term finance that are available to the businesses followed by the illustrations regarding liquidity and financial ratios in order to compare the performance of two entities of a similar industry to check how they manage their working capital requirements…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.4% of users find it useful
Various sources of short-term finance
Read TextPreview

Extract of sample "Various sources of short-term finance"

Download file to see previous pages The researcher of this essay aims to pay special attention to various kinds of short-term finance sources available to the business entities. Four of those short-term sources are discussed below. Trade credit is a conventional source of short-term finance such that the traders and manufacturers are facilitated by their suppliers to purchase the raw material on credit. The amount of credit is not provided in the form of cash rather the goods are supplied by the suppliers to the manufacturers or traders with facility to pay for those goods after a certain time period generally ranging from 30 to 90 days. Banks also provide the short term credit facility to their customers especially to the business with the availability of funds in the form cash. Normally banks offer different kinds of credit facilities including loans, overdrafts, cash credit and discounting of short-term bills. At times, when the goods are quite costly or they are to be delivered in bulk and large quantities, the customers are asked by the companies to at least pay some amount in the form of advances. These advance payments are used by the companies to meet their short-term obligations. Cooperative banks are created at the district, community levels such that these banks offer credit facilities to the business entities. They offer better credit facilities as compared to the commercial banks in terms of interest rates and the repayment of the credit. ...
ntional source of short-term finance such that the traders and manufacturers are facilitated by their suppliers to purchase the raw material on credit. The amount of credit is not provided in the form of cash rather the goods are supplied by the suppliers to the manufacturers or traders with facility to pay for those goods after a certain time period generally ranging from 30 to 90 days. Bank Credit Banks also provide the short term credit facility to their customers especially to the business with the availability of funds in the form cash. Normally banks offer different kinds of credit facilities including loans, overdrafts, cash credit and discounting of short-term bills. These facilities mainly differ in terms of interest rates, repayment mechanisms, credit limits, etc. Customer’s Advances At times, when the goods are quite costly or they are to be delivered in bulk and large quantities, the customers are asked by the companies to at least pay some amount in the form of advances. These advance payments are used by the companies to meet their short-term obligations. Generally, the customers do not feel any hesitation in providing advances to the customers when they are aware of the fact that those goods would require some time to be delivered and the goods are also not available easily elsewhere. Loans from Cooperative Banks Cooperative banks are created at the district, community levels such that these banks offer credit facilities to the business entities. They offer better credit facilities as compared to the commercial banks in terms of interest rates and the repayment of the credit. However, those business concerns are obliged to become the members of those communities in order to avail the credit facilities provided by these cooperative banks. Comparison of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Various sources of short-term finance Assignment”, n.d.)
Retrieved from https://studentshare.org/management/1395621-various-sources-of-short-term-finance
(Various Sources of Short-Term Finance Assignment)
https://studentshare.org/management/1395621-various-sources-of-short-term-finance.
“Various Sources of Short-Term Finance Assignment”, n.d. https://studentshare.org/management/1395621-various-sources-of-short-term-finance.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ja
jaskolskideonte added comment 4 months ago
Student rated this paper as
The topic of "Various sources of short-term finance " was tough to find. I spent ages to find it. Here at StudentShare, I got the finest example. Many thanks!

CHECK THESE SAMPLES OF Various sources of short-term finance

Short term finance sources

...? Module Semester Short term finance sources refer to sources that have to be repaid within a year. These are important tools which help in operating the business efficiently. The short term finances also help in making a long term strategy for the business. They can be used to pay for the salaries of the employees and other administrative costs. There are four most common short term sources of finance that a business uses to finance its expenses and they are; 1) Bank overdraft 2) Short term loans 3) Trade credit 4) Sale of unused assets Bank Overdraft: In today’s modern era, every business maintains a bank account of its own where it deposits the money it receives from the sales generated by the business. As the businesses expand... as...
6 Pages(1500 words)Essay

The most common short term sources of finance that corporations use to generate funds

...? Module Semester In this report, we will be discussing the most common short term sources of finance that corporations use to generate funds, secondly, annual reports of two companies Premier Oil and LukOil will be compared, thirdly, the liquidity ratio and efficiency ratio of those will be compared and their financial position will be analyzed. Short term finance sources refer to sources that have to be repaid within a year. These are important tools which help in operating the business efficiently. The short term finances also help in making a long term strategy for the business. They can be used to pay for the salaries of the employees and other administrative costs. There are four most common short term sources of finance... to arrange...
6 Pages(1500 words)Essay

Report on Various Funding Sources

...? Report on Various Funding Sources Table of Contents Executive Summary 3 II. Sourcing Funding for the Firm 4 III. Real-World Examples 13 IV. Glossary 14 V. Conclusion 15 VI. Referencing and Presentation 16 1. Executive Summary This report details the different funding options available to finance the ?100m in funding needed for the new project at this UK renewable energy firm, and makes recommendations for the appropriate funding source, given company concerns about yielding control of the company, as well as costs and other long-term viability of any additional funding sourcing moving forward. The company has no debt and is equally divided in terms of ownership among five private individuals. Differing debt and equity funding... . There is...
12 Pages(3000 words)Dissertation

Short Term Long Term Goal

...?Prompt: Please answer all parts below: Why are you seeking to pursue your MBA study at this moment of your life? Describe your short and long term career objectives. How will you measure your success? Who do you want to be in the future? What steps will you take to achieve your goal? Explain how an MBA will contribute to these goals. Coming from a family of entrepreneurs, I was taught early in life that while formal education can teach you how to earn a living, self-education can make you a fortune. That is why although I’ve already had a considerable amount of success in my business ventures owing to my raw talent and the aptitude for business that I have gained over the years, I realized that it was...
3 Pages(750 words)Essay

Short Term Long Term Goal

...understanding of sales and returns was inherent to me right from the start. Since then, I have never lost sight of my goals of pursuing entrepreneurship. In college, my friend and I started a clothing import company which enjoyed considerable sales. I also joined the companies of AXA Advisors, Philip Simon Developments USA, Inc and later Shoesapart, Inc. to learn fundamental business structures and to have an in-depth scope into daily business operations. Despite these developments, I know I can still be better. Thus, my short term goal is getting accepted to the CEIBS MBA program. My recent trip to China made me discover the great business potential that it holds. Not only does it offer accelerated and...
2 Pages(500 words)Essay

Long-Term Sources of Finance

..., furniture etc. These assets must be financed with long-term financing sources. The chief financial officer (CFO) is usually responsible for making suggestions to the senior management and board of directors related to financing issues. These suggestions and recommendations carefully analyze the advantages and disadvantages of each long-term financing option. After the decision is made by the senior management and the board, the CFO is responsible for obtaining the long-term finances. The common forms of long-term finances are preferred stock, common...
8 Pages(2000 words)Essay

External Sources of Finance

...? inserts His/her inserts inserts Grade   External sources of finance The selectionof an external source of financing is usually one of the most challenging aspects in the establishment of a business enterprise. Acme is therefore at crossroads to evaluate the various options available and select the best source both in terms of cost and efficiency. In any case, it has to be realized that building a Greenfield investment from scratch is usually more expensive than acquiring an already existing business. Financing decisions are normally very fundamental considerations to be made by any multinational...
4 Pages(1000 words)Essay

Managing Finance - short- term debts and liabilities

...Managing Finance Part A: Working Capital Working capital is basically what an investor/entrepreneur/business owner is left with after deducting current liabilities from current assets. It is an indication of the liquidity of any business. More the working capital, more liquid is the business thought to be. Companies that have a good working capital can do their day-to-day functions well and their operating expenses have a good amount to get covered by. (Working Capital Definition, 2008) Many companies with even good profitability figures, face problems in running and dealing with their short- term debts and liabilities. To make sure that a business keeps running itself efficiently, it...
6 Pages(1500 words)Essay

Long-term Sources of Finance

...Long-term Sources of Finance Businesses need fixed assets like factory and office buildings, plant and machinery, and vehicles for which funds on large scale are required. Besides, funds for Research and development, patent and copy rights, advertisement for products launch are required on long-term basis. It is not desirable to use short term funds because of higher rate of interest and because of their limited availability. If the short term funds are diverted for long-term purposes, business will suffer for want of working capital required for inventory, bills receivable and operating expenses. Hence to meet the requirement of long-term capital, there are long-terms sources of finance which the business should seek for ensuring... is...
14 Pages(3500 words)Essay

Short Paper: Analyzing Sources

...9 September Source Analysis of the “Letter of Juan Rogel to Francis Borgia, 1572” On August 28, 1572, Father Juan Rogel wrote to Father Francis Borgia. Rogel described how he and his crew rescued the Spanish young boy Alonso, who survived the Indian Massacre at Ajacàn.1 The letter also illustrated how the Spaniards took revenge and killed many Indians. This paper analyzes the content, evidence, and inquiries of this primary document. The context of the document is the colonization of the New World, or the Americas. During this time, Europeans travelled to the Americas to establish new colonies. The white settlers believed that they had the noble goals of civilizing the Indians by assimilating them and teaching them...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Various sources of short-term finance for FREE!

Contact Us