Answer to Question #241831 in Marketing for Penny

Question

What are the sources of short term and long term fund? 

Answer 1

The main sources of short-term financing are;

(1) trade credit

(2) commercial bank loans

(3) commercial paper, a specific type of promissory note

(4) secured loans.

The main sources of long term funds include;

a) Share Capital or Equity Shares.

b) Preference Capital or Preference Shares.

c) Issue of Debenture / Bonds.

d) Term Loans from Financial Institutes, Government, and Commercial Banks.

e) Venture Funding.

f) Asset Securitization.