Short term sources of finance Flashcards
1
Q
What are the needs for finance?
A
Paying for expenses
Business expansion
New products/services
2
Q
What are some short term sources of finance?
A
Buying stock
Paying utility bill
3
Q
What is the feature of short term finance?
A
Usually repaid immediately
or within a year
4
Q
What is the feature of long term finance?
A
Paid over long period of time
(can be up to 25 years)
5
Q
What are bank overdrafts good for?
A
Covering short term expenses that can be repaid quickly
6
Q
What are trade credits good for?
A
Paying for stock or goods later.
