Content preview from Fundamentals of Financial Management, Third Edition
- What are the different forms of short-term funds to finance the current assets?
- Spontaneous funds known as trade credit. They emerge when a firm buys raw material on credit terms.
- Negotiated funds that take the form of short-term loans either from banks or from other sources.
- Why do firms prefer trade credit?
- It is easily available.
- It is highly flexible.
- It carries fewer restrictions.
- Can the payment be stretched beyond the due date?
- It can be if the present value of payment is lower than in the case of no stretch.
- What are the different forms of bank finances?
- Overdraft
- Cash credit
- Purchase/discounting of bills
- Letter of credit
- Working capital loan
- What are the different modes of security against bank loan? ...
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Publisher Resources
ISBN: 9789332508170