Long-term and Short Tern Financing

Long-term and Short Tern Financing - short term loans Short...

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Name: Georgia Moore Date: 03/17/2011 Assignment: Long- Term and Short-Term Financing Type of Financing What each financing is. Situation it is used for. Long- Term Is a form of financing that is provided for more than a year. There are factors to determine long- term financings requirements. These are nature of business, nature of goods produced and technology used. [ Factors determining long-term financial requirements Nature of Business Nature of goods produced Technology used ] (MapXL Inc, 1999-2009). It is for businesses that face a shortage of capital. [ Long term financing services are provided to those business entities that face a shortage of capital.] (MapXL Inc, 1999-2009). The purpose of long term financing is to finance fixed assets, to finance the permanent part of working capital, and increasing facilities. Short-Term Is provided to business that pays it back in less than a year. It gets this from banks which are
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Unformatted text preview: short term loans. Short term financing is for companies who have been running for awhile. [Selling shares and borrowing long term are appropriate for starting a company or financing expansions and new facilities; but once a company is in operation] (Demand Media, Inc, 1999-2011). This is used when a company needs financing to pay unexpected expenses, payroll, and inventory. [It will most likely need short term sources of money to fund inventory, payroll and unexpected expenses.] (Demand Media, Inc, 1999-2011). Demand Media, Inc. (1999-2011). Ehow money . Retrieved from http://www.ehow.com/list_5805548_advantages-short-term-sources-finance.html MapXL Inc. (1999-2009). Maps of world finance . Retrieved from http://finance.mapsofworld.com/finance-theory/term-financing/...
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This note was uploaded on 05/13/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.

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Long-term and Short Tern Financing - short term loans Short...

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