21

Short-term Sources of Financing

“Beware of little expenses; a small leak will sink a great ship.”

 

Benjamin Franklin

LEARNING OBJECTIVES

After reading this chapter, you will be able to:

  1. Understand the various working capital sources of funds like trade credit, provisions, and reserves.

  2. Understand the various bank sources of working capital funds.

  3. Understand the concept of commercial papers, factoring and forfaiting.

FINANCE IN PRACTICE

Tata Motors had to shut its Jamshedpur production plant in India for about three days between November 6 and November 8, 2008, followed by the closure of the Pimpri production plant for six days from November 21 to November 26 due to an acute demand slump. The three-day and six-day closure of the ...

Get Financial Management now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial