Question

short term s
ources of finance ​

Answer 1

Answer:

S.O.F

Explanation:

Full form : S.O.F is Sources of Finance

Answer 2

Short term finance basically means raising capital or fund for a brief or short period of time which traditionally varies from only few days to one year.Short term financing is applicable for small business enterprising,short term business ventures and small business projects.

Explanation:

Main sources of short term finance:-

• Trade Credit or funds obtained by firms or companies from traders and merchandisers for short time period,usually 30 days to 90 days.It is given to the firm or company without any collateral or security.
• Customer Credit or advance payments by firms or companies from customers for any big purchase or special orders which can be used for short term financing of any business activity.
• Installment Credit or any funds associated with facility by machinery and equipment on short term installment which acts as a source of fund in kind to the firms.
• Financing through Accounts Receivables or short term financing through the purchase of accounts receivables from the consumers or buyers.