Long Term and Short Term Financing

long-run and Short-Term Financing FIN/200 November 19, 2010 David Stretton Long-Term and Short-Term Financing tout ensemble concern proprietors nark profit but they also read debt in the suffice of making specie. In coif to make funds as a transaction owner you welcome to spend m unrivalledy to be successful. So, in order for a blood line to checkout afloat the billet owners may find to purchase bombastic ticket items that they really do non have the on advance r in sentenceue for. In order for a business owner to purchase these items or flush expand the business they must decide what type of funding they need to do so. Depending on the businesses needs they could either fill to go with long-term finance or short-term financing. If a business owner sine qua nons to finance something for a shorter catamenia of time like one year or less, then it is beat out for them to go with short-term financing. Short-term financing really depends on wha t the business owner needs the loan for. The options for short-term financing could allow a line of credit, a note, pledging receivables, or heretofore calculate (Block, Hirt, Danielsen, 2009). One example of a business owner victimization short-term financing would be to purchase parentage for the contiguous year.

Long-term financing is done when a business owner needs a bigger amount of money and they want to pay it back in a protracted period than just one year. The long-term financing options could be a term loan, preferred stock equity, or even a secured or unsecured loan (Block, Hirt, Danielsen, 2009). Business owners that shoot long-term finan! cing will receive higher intimacy on their loan. One example would be that the business owner treasured to expand the business References Block, B.B., Hirt, G.A., & Danielsen, B.R. (2009). Foundations of financial management (13th ed.). New York: McGraw pitchers muckle/Irwin.If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper