Corporate Finance #7 Short Term Financing
This course will talk about quick time period financing choices from a company finance perspective.
We are going to embrace many instance issues, each within the format of shows and Excel worksheet issues. The Excel worksheet shows will embrace a downloadable Excel workbook with at the least two tabs, one with the reply, the second with a preformatted worksheet that may be accomplished in a step-by-step course of together with the educational movies.
Learners will perceive accounts payable and commerce credit score as choices from the attitude of short-term financing. An organization’s money administration and financing technique associated to accounts payable would usually be to increase cost phrases so long as potential with out incurring penalties or straining the connection with distributors.
We may also talk about credit score choices from a financial institution and business paper financing. When contemplating short-term credit score choices from a financial institution the corporate will wish to take into account the price of the mortgage, the curiosity charged. One sort of short-term mortgage is a time period mortgage, credit score usually prolonged for one to seven years. Term loans are sometimes repaid in month-to-month or quarterly installments.
Business paper is usually a short-term unsecured promissory word. Normally issued to the general public in $25,000 minimal items.
This course will take into account collateral because it pertains to short-term financing. Collateral usually represents some type of asset securing the mortgage. Collateral could also be used when a financial institution believes the mortgage is the next danger.
We may also talk about accounts receivable and stock financing.