Financing the Short Term Obligations of The Business - Coursework Example

Only on StudentShare

Extract of sample
Financing the Short Term Obligations of The Business

Sources of short term finances available to a business 1. Trade credit – this is also referred as suppliers’ credit, ledger credit or open book account. It is needed when commercial purchases are not to be cleared immediately. In this case the company holds an accounts payable for the amount it owes to the suppliers while in turn running business on not paid for bills. Trade credit varies in length, type of customers and terms prevailing in a particular industry. However, the customer has to forego any discounts that would have been offered on prompt payment. The company can resolve to one month single statement bill or even the open book; this is where they have an extra ten days to clear the bill (Guerard, 2007, 108). 2. Bank loans – companies source for commercial loans from banks in order to meet or cover temporary gross working capital needs. The loan can either be secured or nonsecured. Secured loans have a lien against a company’s asset e.g. inventory, outstanding receivables et cetera, or a pledge of credit, to back the loan. Unsecured loans are issued depending on creditworthiness of the business. The cost of the loan varies with its size and rates charged on the loan. However, a prime rate is used as a benchmark for these types of loans. ...Show more

Summary

‘Financing the Short Term Obligations of the Business’ Name: Institution: Instructor: Subject: Group: Date Short Term Financing Introduction: Short term finances are used by many firms. They are more often necessary on temporal basis and during times of fluctuation of funds…
Author : jon21
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Financing the Short Term Obligations of The Business"
with a personal 20% discount.
Grab the best paper

Related Essays

Short-term obligations
The study recommends that the management of PepsiCo formulate policies towards improving its efficiency and liquidity ratios. This is because the company is well beaten by McDonalds that is its competitor in the industry. The paper therefore recommends change in presentation of financial reports to include all items that are applicable to analysis of financial statements.
5 pages (1250 words) Essay
Financing The short Term Obligations of the Business (BMW vs Mercedes)
The short-term finance refers to that finance which is obtained for a shorter period of time, generally for a period of less than one year. After obtaining the short-term finance, the companies make use of it in either raising working capital for the business or financing other areas of the business.
4 pages (1000 words) Assignment
Financing the Short Term Obligations of The Business
On the other hand, the second part entails the comparison of financial performance of two companies, namely, Electronic Arts Inc and Activision Blizzard Inc on the basis of annual reports and financial ratios. Body Paragraphs Task 1 The four sources of short term finance available to any business comprise of Trade Credit, Bank Credit, Customers’ Advances and Loans Account Receivables.
3 pages (750 words) Coursework
Financing the Short Term Obligations
In the first part, sources of short term finance for businesses’ have been listed and then explained. Whereas, the second part contains evaluation of the financial performance of two organizations, that is, McDonalds and Burger King on the basis of the latest annual reports released by the two companies along with the financial ratios.
4 pages (1000 words) Coursework
Financing the Short Term Obligations of The Business
The methodology provides a description about four short term finance sources availed by the businesses. Each one is separately described. Subsequent to that, the liquidity and efficiency ratios of Sainsbury and Tesco have been computed and compared. Four different sources of short term finance Short term finances fulfil the day-to-day operations of business.
5 pages (1250 words) Assignment
Financing the Short Term Obligations of The Business
There are several ways of raising short term funds for the business which are: a. Commercial Loan and bank overdrafts Commercial loans are loans usually provided by banks for the financing needs of a business. Commercial banks typically offer straight term loans to credit lines that would be used in the various operation of the business (Raiborn 2010).
5 pages (1250 words) Assignment
Financing: Long Term and Short Term
Finance makes one of the fundamental requirements for establishment and good running of a business. Finance, however, may be acquired through different methods depending on its availability and the ease of repaying it. Financing means the provision of financial materials that a business requires.
10 pages (2500 words) Essay
Investment and saving decisions
Investment simply means an asset or item purchased with the hope of income generation or value appreciation within some time. Investment has two sides that can give angles of definition. In economics, investment is defined as the purchase of
6 pages (1500 words) Essay
You Are an Entrepreneur
t, family style restaurant, pizzeria, ethnic restaurant, bakery , coffeehouse, family style restaurant and sandwich shop which will provide us a clear idea about the expectation and requirement of the potential customers. The determination and proper planning of the restaurant
6 pages (1500 words) Book Report/Review
Financial ratio analysis
The following ratios will aid the analysis: leverage, liquidity, profitability, efficiency, and market value ratios. The analysis will cover one financial period (the year 2013). Based on the ratios, an inference will be made regarding a better performing
2 pages (500 words) Assignment
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT