Question

Write your question here (Keep it simple and clear to get the best answer)what are the characteristics of short term financing

Answer 1

Answer:

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Answer 2

Short term finance refers to financing needs for a small period normally less than a year.

Explanation:

• In businesses, short term finance also known as working capital financing.
• Short term loans are called such because of how quickly the loan needs to be paid off.
• In most cases, it must be paid off within six months to a year, at most, 18 months.
• Any loan for a longer loan term than that is considered a medium term or long term loan.
• Some short term loans don’t specify a payment schedule or a specific due date.
• They simply allow the borrower to pay back the loan at their own pace.
• Short term financial objectives are important, because they help create a plan the business or individual can follow.
• Financial objectives also require the planner to address financial issues, such as balancing budgets and ensuring financial research and resources are available.
• Bank loan is the most common form of short term financing.

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1.What is mean by short term finance?

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