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What are the short-term sources of finance

Jun 18, Get to know the different sources of raising short-term and long-term financing for working capital. Companies cannot rely only on limited. There are a variety of short term sources of funds available to a company, which require varying levels of collateral, personal guarantees, and interest expense. As present day commerce is built upon credit, the trade credit arrangement of a firm with its suppliers is an important source of short-term finance.

There are various sources of finance & these funds are categorized as Owned or Borrowed, Long or Short Term, Internally or Externally sourced funds. sources like trade credit, cash credit, overdraft, bank loan make money available for a shorter period of time are called sources of short-term finance. Get an answer for 'What are the sources of short term finance?' and find homework help for other Business questions at eNotes.

Ways to finance a business. Some sources of finance are short term and must be paid back within a year. Other sources of finance are long term and can be paid. Short Term Sources funds have to be used (exclusively) for meeting the working capital requirements only and not for financing fixed assets. Short-term financing deals with raising of money required for a shorter periods i.e. periods varying from a few days to one year. There are, however, no rigid. The sources of finance of business can be both short term as well as long term. Short term business finance facilitates businesses and financiers to seize quick.