The sources of long term financing are - Debt , Derivatives & Equity financing by long-term interest loans to finance long-term investment projects & fixed assets. Equity- By going for intial public offer (IPO) & diluting the stake of company to raise funds. Derivatives is another method of financing long-term investments using future derivatives like swaptions, forward contracts, future contracts & options. Short term financing is a type of finance which is required for a period of less than an year. the short-term finance is used for working capital requirements of the company.four sources of short-term financing are - TRADE CREDITS, ADVANCES FROM THE CUSTOMERS, COMMERCIAL BANKS & FINANCIAL INSTITUTIONS. trade credits - these are credits in the form of the goods given by one firm to another to buy goods. the range of credit
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short term financing, long term financing, commercial banks