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Medium term financing does not prevent you from paying off your loan quickly or taking out another loan in the future. The down side is that this type of loan typically has a higher interest rate and cannot be applied to any tax breaks.

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11y ago

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What are the advantages and disadvantages of short-term financing?

The advantage is that if the rates go down you are not locked into a high rate for a long term. The disadvantage is that if the rates go up you are not locked into the lower rate for a long term.


What is meant with FAFSA estimator in finances?

The term FAFSA estimator in finances means it is the amount that the government calculates that you get or have. Here is a site that examines this in more detail for you www.finaid.org/calculators/quickefc.phtml


What are the Advantages of short term financing?

The advantages of sort term financing is that it helps with the smooth running of the day to day activities.


What are the advantages and disadvantages of bank term loan?

In bank term loan, the firm can utilise the fund for long term projects,spanning even few years, thus fulfilling its futre growth. Whereas the rate of interest in bank term loan is bit in the higher side and sometimes remains unattractive to firms vying for bank loans.


What are the advantages and disadvantages of term loans?

A term loan is the most traditional (and generic) type of loan for businesses and consumers. Term loans have a specific duration, payment frequency and carry fixed interest rates. Some advantages of term loans include the following: * Payment will be the same every month - budgeting is straightforward * Rate does not change - not at mercy of the interest rate markets * Accounting entries for term loan transactions are clear and easy * Helpful for improving a credit report - steady but sure wins the race Some disadvantages of term loans include the following: * Any change in need requires a new/additional loan * If interest rates go down, interest expense payments are higher relative to the market rate * Many term loans have prepayment penalties

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Advantage: Large cash injection. Disadvantage: In the long term it is more expensive.


What are the advantages and disadvantages of a long term investment?

Long term investment advantages tend to be a higher return and sometimes the absence of tax payable on the return. Disadvantages can include fluctuations in the market meaning the value is less than the investment made, and the fact that money is tied up for a long time.


What are the advantages and disadvantages of short-term financing?

The advantage is that if the rates go down you are not locked into a high rate for a long term. The disadvantage is that if the rates go up you are not locked into the lower rate for a long term.


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What do you think the advantages and disadvantages were of the constant fighting among the Greek city states?

The victors achieved their ends, at least in the short term. There was hideous loss of life and destruction.


What do you think the advantages and disadvantages were of the constant fighting among the Greek city-states?

The victors achieved their ends, at least in the short term. There was hideous loss of life and destruction.


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