Long-Ter - Running head: CHECKPOINT: LONG-TERM AND...

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Running head: CHECKPOINT: LONG-TERM AND SHORT-TERM FINANCING 1 Checkpoint: Long-Term and Short-term Financing Nikki Vergets Fin/200 4/28/2011 John Simulcik
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CHECKPOINT: LONG-TERM AND SHORT- TERM FINANCING 2 Checkpoint: Long-Term and Short-term Financing Long-Term financing is often used with larger investments, or for companies that are going through a period of time that they have a shortage of capital coming in ( , 2010). This may be used to cover short term needs, and being that this is the loan with the longest period of repayment which can end up being as long as 7 to 10 years depending on the company and how they qualify. There is also a higher interest than a Short-Term loan so that is what can make it risky ( , 1999-2011). Funds are usually used to finance buildings, purchase of required equipment, investing in expansions or buying more property in another area, and any other daily operations; otherwise it can also be used to pay a 30 year mortgage, or 10 year Treasury note (, 1999). This loan would only be helpful if you have a strong company and the income to make
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Long-Ter - Running head: CHECKPOINT: LONG-TERM AND...

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