How are the major sources of funds evaluated to meet a firm's short-term and long-term financial needs?
Established firms have several sources of short-term funds: bank loans (can be extended with good credit), trade credit (when suppliers ship materials to a firm on credit), factoring (provide immediate cash to firms by purchasing their accounts receivable at a discount), & commercial paper (short-term IOUs). Equity financing (funds provided by owners) and long-term debt financing can be done by firms to build up their permanent financial base.
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Finance
- How do financial managers evaluate capital budgeting proposals?
- How do financial managers acquire and manage current assets?
- How do financial managers determine the firm's capital structure?
- What are the tools financial managers use to evaluate their company's financial conditions and develop future plans?
- What is the goal of financial management and what issues do financial managers confront?