Sources and Uses of Short Term and Long Term Funds
Sources and Uses of Short Term and Long Term Funds
Sources and Uses of Short Term and Long Term Funds
SOURCES AND
USES OF SHORT-
TERM AND
LONG-TERM
FUNDS
Sources of Short-Term Funds
Sources of short-term financing may be
unsecured or secured, they appear as
currents liabilities.
Restrictions
Flexibility
Reliability
of the lender as a source of
future borrowing
Trade Credits
- Refers to acquisition of merchandise (or raw
materials) on open account
Credit Terms
2/10, N/30 – 2% Discount if paid within ten days from
date of invoice, account is due in 30 days