Describe a short-term financing option and discuss the advantages and disadvantages. Is there a limit to the amount of a short-term bank loan?
Describe a short-term financing option and discuss the advantages and disadvantages. Is there a limit to the amount of a short-term bank loan?
Chapter1: Financial Statements And Business Decisions
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Describe a short-term financing option and discuss the advantages and disadvantages. Is there a limit to the amount of a short-term bank loan?
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Step 1
Short term financing:
Any loan that is obtained for a short period of time is Short Term financing.
As it is a loan it involves capital and interest.
The minimum period of short is generally 3 months to a max of 18 months. Any loan taken for more then 18 months is medium term or loan term loan.
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