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Explanation of long term financing in commercial banks?
First, "long-term" might not be that long as it generally means how long it would take to increase capacity. A Farmer might do that in one season by planting additional acres. But generally banks don't offer long term financing, though the bank holding company might have a subsidary that does it. I would guess,guess, ten years might be limit for bank loans.
Definition of long-Term Financing?
Definition of long-Term Financing?
What is the meaning of short term financing and long term financing?
Short term financing it has a repayment schedules of less than 1 year,while Long term financing matures in 10 years or longer. Short term financing is a loan or credit facility with a maturity of 1 year or less,while Long term financing, where liabilities (plus interest) would not be due within 1 year.
What is a Commercial loan for?
Commercial loans are mainly used to purchasing, building or expanding companies/ houses. These are provided by banks on short or long term agreements.
Sources of short-term financing?
Short term financing can be found in banks, check cashing businesses, and finance companies. These may be obtained for personal use or to buy a car for example.
What is mixed banking?
When a bank combines the deposit as well as investment banking activites, it is called mixed banking. In other words, when banks perform the dual function of commercial banking and investment banking, i.e., provide long term lending to industries. it is called mixed banking. It all stared in Germany. After indutrial development took place. there were no banks in Germany to provide long term finance to these industrial units. So the commercial banks in Germany were forced to finance to these industries both for short-term as well as for long-term requirements. These banks, were therefore, called mixed banking. That is they were doing the functiion of a commercial banks as well as investment banks. M.J.SUBRAMANYAM, BANGALORE, INDIA
Long term loans are repaid from what source of cash flow?
Long term loans are part of cash flow from financing activities.
Long term finance sources of public limited company?
Public limited companies can get long term financing from banks or finance companies. Either financial institution will assess the company's creditworthiness to determine if they would like to create a loan for them.
What is long term funding options?
Long-Term Financing -- Long-term financing is more often associated with the need for fixed assets such as property, manufacturing plants, and equipment where the assets will be used in the business for several years. It is also a practical alternative in many situations where short-term financing requirements recur on a regular basis.
What are the disadvantages of short term financing?
One disadvantage to short term financing is the fact that the note may become due before the company is ready to pay it. Another disadvantage is the fact that the interest rate on short term financing is generally higher than the interest on long term financing.
What is agriculture credit?
Commercial banks are the largest source of agricultural credit. agricultural credit means all loans,short term,medium term and long term loans which give just farmers........ these loans gives commercial banks and any other financial institutions as just like ZTBP,PRSP,IDBP,etc..... Asif Majeed and Waqas Akram...
When the yield curve is upward sloping generally a financial manager would a utilize long-term financing b utilize short-term financing c wait for future financing d lease?
a
