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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.
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Sources of finance for expanding the business?
sources of finance for expanding the a bussiness? short term medium term half term and long term
What is the proper examples of medium term finance?
An asset holding period or investment horizon that is intermediate in nature. The exact period of time that is considered medium term depends on the investor's personal preferences, as well as on the asset class under consideration. In the fixed-income market, bonds that have a maturity period of between five to 10 years are considered to be medium-term bonds.
Two short-term sources of finance?
Following are two short term sources of finance: 1 - Creditors 2 - Banks
What are the medium term sources of finance?
Medium-term sources of finance are: 1. Loans: While short-term financing provides bank loans upto 3 years, medium-term loans are offered for 3-10 year periods. The loan interest is usually set as a margin dependent on the riskiness and credit rating of the borrower. The loan interest can be variable or fixed. It can be adjusted periodically throughout the life of the loan at an amount above the bank's base rate. 2. Lease Financing: Banks can also issue finance leases, which are more competitive and thus sometimes preferred by some foreign supporters over traditional loan financing. It is also a useful option when other financing sources are unavailable. For example the Export Import Bank of the United States (Ex-Im) will provide up to $10 million to creditworthy foreigner investors, which must be repaid in a seven-year period. 3. Currency Bonds: Medium-term currency bonds are issued to investors through foreign and domestic entities. Maturity bands for medium-term investors range from periods of 9 months to up to 30 years. Government bonds also have the benefit of being scrutinized regularly by policymakers for better yields and interest rates.
What does the financial term CAC mean?
what does 'CACS' mean in finance
Sources of finance for expanding the business?
sources of finance for expanding the a bussiness? short term medium term half term and long term
Which is more risky between running finance and term finance. and why.?
Which is more risky between running finance and term finance. and why?
What is the proper examples of medium term finance?
An asset holding period or investment horizon that is intermediate in nature. The exact period of time that is considered medium term depends on the investor's personal preferences, as well as on the asset class under consideration. In the fixed-income market, bonds that have a maturity period of between five to 10 years are considered to be medium-term bonds.
Long term finance sources?
Following are long term finance source:Bonds issueDebenturesIssuance of share capital
What are the functions of multinational companies?
short term finance long term finance foreign trad function
Two short-term sources of finance?
Following are two short term sources of finance: 1 - Creditors 2 - Banks
What is development in few words?
development banks they are the financial institution which provide long with and medium term finance to entrepreneur and organisation so that funds are invested and the industrial ventures which are in conformity with national development plans
What is the term for dissolving medium in the solution?
Solvent is the term for a dissolving medium in a solution. The material which is being dissolved is called the solute.
What is the term for medium speed?
Moderato
What term is defined as any substance through which energy travel?
A medium
What term means to issue signals along a network medium such as a cable?
which term means to issue signals along a network medium such as a cable
What are the medium term sources of finance?
Medium-term sources of finance are: 1. Loans: While short-term financing provides bank loans upto 3 years, medium-term loans are offered for 3-10 year periods. The loan interest is usually set as a margin dependent on the riskiness and credit rating of the borrower. The loan interest can be variable or fixed. It can be adjusted periodically throughout the life of the loan at an amount above the bank's base rate. 2. Lease Financing: Banks can also issue finance leases, which are more competitive and thus sometimes preferred by some foreign supporters over traditional loan financing. It is also a useful option when other financing sources are unavailable. For example the Export Import Bank of the United States (Ex-Im) will provide up to $10 million to creditworthy foreigner investors, which must be repaid in a seven-year period. 3. Currency Bonds: Medium-term currency bonds are issued to investors through foreign and domestic entities. Maturity bands for medium-term investors range from periods of 9 months to up to 30 years. Government bonds also have the benefit of being scrutinized regularly by policymakers for better yields and interest rates.
