CheckPoint Long-Term and Short-Term Financing

CheckPoint Long-Term and Short-Term Financing - at the best...

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CHECKPOINT: LONG-TERM AND SHORT-TERM FINANCING 1 CheckPoint: Long-Term and Short-Term Financing Holly Sestito FIN/200 June 3, 2011 Noah Plante
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CHECKPOINT: LONG-TERM AND SHORT-TERM FINANCING 2 CheckPoint: Long-Term and Short-Term Financing When looking at the business financial end some companies will use short-term and long- term financing. This will help keep the cash flow coming into the company if different ways. With short-term this would be any investment that will last a year or less. The cash flow from this type of financing maybe used for the day to day operation expenses by the company. Long- term would be up to five years. This could be an asset the company purchased to reduce cost increasing the company’s cash flow. When looking at different situations for the use of these types of financing we must look
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Unformatted text preview: at the best interest of the company. Most short-term financing could have a higher credit rate for the company. This would be purchasing materials on credit to be paid back over the course of a year or less. This would bring in money to the company because of the product they will be turned into. If a company was to purchase a new machine that makes the product faster and needed less people to operated it. They would have purchase this on credit to be paid back over time. This will cost the company less money in labor hours plus they will be able to produce more products for consumers to purchase. Both types of financing will help when the company is growing to bring in more cash flow....
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CheckPoint Long-Term and Short-Term Financing - at the best...

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