0
Which is more costly long term financing or short term financing?
Wiki User
∙ 16y ago
Both can be good and bad. This question is too broad. Overall short term financing is more expensive however it can be a lifeline and save a business. Do some more search online for business credit and business financing.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
Why is car dealer financing more costly than getting a loan from a bank?
There are many reasons why car dealer financing is more costly than getting a loan from the bank. It is more costly because car dealers are usually in the business of making large amounts of money.
Increased use of long-term financing is generally a more conservative approach to current asset financing?
yes this is a true statement
What is medium term finance?
To finance a business for a period of more than a year but less than 10 years is called intermediate financing. Such type of finance is obtained for expansion and modernisation of existing plant. It is also needed for the purchase of assets, costly raw material. It may be used to meet the cost of maintenance, repair, improvement and betterment of plant. Lastly, it can be used to repay the short term loans.
What is the difference between short term finance and long term finance?
1. Most short-term sources of financing occur over a period of less than a year to one year, although some sources can last up to three years or longer. Long-term financing that a longer period of time about 3-30 years or more. like home mortgages are typically available in 15- and 30-year durations. 2. Because short-term financing is repaid over a shorter length of time, the interest rate or cost to borrow money is smaller. Long-term sources such as bank loans have a higher interest rate due to the amount of time it takes to finance the loan and repay the capital.
Which is an advantage of equity financing over debt financing?
One advantage of equity financing over debt financing is that it's possible to raise more money than a loan can usually provide.
Why is car dealer financing more costly than getting a loan from a bank?
There are many reasons why car dealer financing is more costly than getting a loan from the bank. It is more costly because car dealers are usually in the business of making large amounts of money.
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.
A firm that uses short-term financing methods for a portion of permanent current assets is assuming more risk but expects higher returns than a firm with a normal financing plan. Explain.?
By establishing a long-term financing arrangement for temporary current assets, a firm is assured of having necessary funding in good times as well as bad, thus we say there is low risk. However, long-term financing is generally more expensive than short-term financing and profits may be lower than those which could be achieved with a synchronized or normal financing arrangement for temporary current assets
What is the matching principle of working capital financing?
An all equity capital structure would be the most conservative type of working capital financing plan approach. The more long-term financing used the more conservative the financing plan, and equity is permanent financing.
Increased use of long-term financing is generally a more conservative approach to current asset financing?
yes this is a true statement
What is medium financing?
To finance a business for a period of more than a year but less than 10 years is called intermediate financing. Such type of finance is obtained for expansion and modernisation of existing plant. It is also needed for the purchase of assets, costly raw material. It may be used to meet the cost of maintenance, repair, improvement and betterment of plant. Lastly, it can be used to repay the short term loans.
What is office financing, and where can I find out more?
Office financing is when you finance something for your office. It is a way to get more money, and to help out your business. You can go to your bank to learn more about office financing.
Has the Covid situation made more people less productive, even though lifestyle is now more costly to maintain?
Apparently people aren't cognoscente of the fact that things are getting worst long term even though there is short term recovery .
What is medium term finance?
To finance a business for a period of more than a year but less than 10 years is called intermediate financing. Such type of finance is obtained for expansion and modernisation of existing plant. It is also needed for the purchase of assets, costly raw material. It may be used to meet the cost of maintenance, repair, improvement and betterment of plant. Lastly, it can be used to repay the short term loans.
Is lemon short vowel or long vowel?
The e is a short vowel, while the o is more of a long vowel.
What is the difference between short term finance and long term finance?
1. Most short-term sources of financing occur over a period of less than a year to one year, although some sources can last up to three years or longer. Long-term financing that a longer period of time about 3-30 years or more. like home mortgages are typically available in 15- and 30-year durations. 2. Because short-term financing is repaid over a shorter length of time, the interest rate or cost to borrow money is smaller. Long-term sources such as bank loans have a higher interest rate due to the amount of time it takes to finance the loan and repay the capital.
Are short or long hairstyles the trend for women in 2011?
Long hairstyles are the trend. You can do alot more with long hair than you can with short. However, some people feel that it is more professional to have short hair.
