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.
Nobody downloaded yet

Various sources of short-term finance - Assignment Example

Comments (0) 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
Polish This Essay94.1% 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 (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Short term finance sources
This research is being carried out to evaluate and present 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 They can be used to pay for the salaries of the employees and other administrative costs.
6 Pages(1500 words)Essay
Project Finance
This has been possible through continued exploitation of natural resources in developing countries governed by unstable governments. There is massive transfer of capital in form of debt to the emerging markets from the developed nations. The poor countries on the receiving end have poor legal systems that attract the ventures of multinational corporations, who desire the less regulated economy for quick profitability than their highly regulated home economies (Fight 2006).
30 Pages(7500 words)Assignment
Finance for Manager (Finance)
Smith – Brown in West Yorkshire – Jool’s Furniture Industries Ltd. The main purpose of this report is to identify and analyse the current position of the company and to develop possible solutions that the company can adopt to improve the current position.
20 Pages(5000 words)Assignment
Finance
However, it cannot be used for specific projects because each project has it own operating risk. b) Book weights should be used to calculate WACC because the market value is subjective and changes regularly. c) Current (marginal) cost rates should be used because WACC is used mainly to make investment decisions and these decisions depend on expected future cash flow from projects in relation to the cost of new capital.
2 Pages(500 words)Assignment
Financing The short Term Obligations of the Business (BMW vs Mercedes)
The short-term finance refers to that finance which is obtained for a shorter period of time, generally for a period of less than one year. After obtaining the short-term finance, the companies make use of it in either raising working capital for the business or financing other areas of the business.
4 Pages(1000 words)Assignment
Understand the sources of finance available to a business
This report has been developed as a financial training tutorial for medium enterprises in the local area. Therefore, main objective of this report is to make the participants clear understand about one of the most important areas business finance i.e. source of finance.
5 Pages(1250 words)Assignment
Finance management for business
Corporate finance is a division which looks after the financial activities of an organisation. It is determined for maximising the shareholder’s value by means of short term or long term financial planning followed by the implementation of effective strategies.
8 Pages(2000 words)Assignment
Short and Long-term Financing
The different type of financing options available for the company is debt financing and equity financing. In debt financing, the company can acquire loan through bank, commercial paper, creditors and bond issuance. On the other hand, in equity financing, the company can obtain funds by issuing shares publicly both common and preferred.
8 Pages(2000 words)Assignment
Describe and explain strategic and short-term planning processes and their importance in management. Identify and discuss various types of financial accounting and control methods
As a result of the importance of Strategic and short-term planning processes in business management it is always advisable for business managers to pay keen attention to
10 Pages(2500 words)Assignment
Finance
The Federal government has been asking the business community to adhere and comply with all set rules and regulations in the administration of taxes. Tax Solutions Inc. offers revolutionary and professional
12 Pages(3000 words)Assignment
Let us find you another Assignment on topic Various sources of short-term finance for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us