Explain the differences between short term and long term financing.docx

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Explain the differences between short term and long term financing.Dialog Company has used either long term financing or short term financing to runtheir business. The reason to use both of the financing is due to pay their expenses such asequipment, assets and other business expenditure.Long term financing means a financial instrument which maturities date is exceedingmore than 5 to 25 years. Normally, Dialog Company used long term financing to debtfinancing, Research and Development (R&D), growth capital, share repurchases and so on.For instance, Dialog Company expands the business and takes RM27million for purchaseequipment, property, and plant in 30 June 2019. Besides, an amounting RM1.4 billion wascommitted by Dialog Company for its tank terminal. The commitment was one of theinvesting by Dialog Company for Pengerang Deepwater Terminal Phase 3 development.Through long term financing can align Dialog Company capital structure and its strategicgoals. Therefore,Dialog Company has more of the time

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Term
Summer
Professor
N/A
Tags
Finance, long term financing, Dialog Company

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