Checkpoint FIN 200 Short term financing

Checkpoint FIN 200 Short term financing - Checkpoint: Short...

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Checkpoint: Short term financing Short term financing for businesses is a very popular way of receiving funds. There are many sources of short term financing, which I will get into further in the following paper. Majority of short term financing is in the form of trade credit and accounts receivable. Bank loans and Commercial paper loans to name a few are used for short term financing. Bank loans are used to provide companies with short term financing for things such as expansions. Banks generally require the business to pay the loan back within a specific time period and also pay on a schedule. On another note most bank loans are renewable. Bank loans also require businesses to keep a certain amount in their account while paying a fee to maintain the loan. Interest rates are used to calculate the loan repayment. The higher the interest rate the higher monthly payment the business will have to pay back; and the lower the interest rate the less the business will have to pay back. A company might choose a bank loan over another type
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Checkpoint FIN 200 Short term financing - Checkpoint: Short...

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