Compare and contrast the various methods of short term financing.?

Answer 1

"Short-Term Financing

(1) There are three main sources of short-term funds: trade credit (borrowing from suppliers), bank loans, and commercial paper (selling short-term debt securities in the open market).

(2) Trade credit is the largest single source of short-term funds for businesses, presenting approximately one-third of the current liabilities of nonfinancial corporations.
(a) The terms "2/10, net 30" mean the buyer can take a 2% cash discount if payment is made within 10 days (the discount period); otherwise, the full amount is due within 30 days (the net period).
(b) Trade credit (assuming you can get it) is more flexible than other means of short-term financing. The firm does not have to negotiate a loan agreement, pledge collateral, or adhere to a rigid repayment schedule.

(3) Firms can stretch accounts payable by postponing payment beyond the end of the net period.

(4) Commercial bank lending is second to trade credit as a source of short-term financing.
(a) Commercial banks also provide intermediate-term financing (maturity between 1 and 10 years).
(b) Short-term unsecured bank loans take one of three basic forms: a specific transaction loan, a line of credit, or a revolving credit.

(5) Bank term loans represent intermediate-term debt. It is a loan for a specified amount that requires the borrower to repay it according to a specified schedule.

(6) Firms that borrow by pledging receivables, inventories, or marketable securities can borrow more."

Short Term Financing
Short-term financing programs are designed to be repaid within a one-year period and are designed to meet the various needs of companies. Five types of short term financing are:

1. Purchase Order Financing - resellers can identify unusually large or unique purchase orders they receive from their customers and finance these specific transactions, thereby reserving their company's credit line for more typical transactions
2. Extended Terms Financing - permits resellers or end users to extend standard 30-day payment terms on their credit line for specific transactions to better manage their company's cash flow.
3. E-Rate Financing - provides financing for resellers who have an E-Rate financed contract with an educational institution. This assists in matching the E-Rate grant payment from the government with the purchase payment to the vendor.
4. Distribution Financing - available for qualified resellers and distributors to extend interest-free 45- and 60-day payments terms to better manage cash flow and company growth.
5. Accounts Receivable Financing - authorized resellers can establish a secured, revolving line of credit with advance rates up to 85% to assist in managing cash flow and company growth.

Answer 2

No, the last two answers are...unscientific. Short term memory is much smaller, for example short term memory can only store 7 plus or minus 2 numbers. And this only lasts for a brief period of time, .2 of a second (200 milliseconds). Furthermore, short-term memory isn't retrieved, it's usually in our 'consciousness' so to speak. Short term is temporary. Long term memory requires retrieval, and is anything further than short-term memory (essentially speaking). Then, not getting into too much detail, long term memory can be broken down into declarative (knowing facts; "The ex president is Bush") and procedural (having skills; remember how to use a telephone after not seeing one for ten years).

Answer 3

thank you for the answers everyone <3