Short Term Sources of Working Capital Financing
Here we discuss about Short Term Sources of Working Capital Financing. S.T.F (Short-term finance) is raised by the company in covering day to day expenses and meeting short-term obligations. Short-term financing and Working Capital are related to each other. Short-term financing includes all those financial instruments and techniques adopted by the company to raise the cash needs to meet current obligations. The company may get cash by investing in capital markets, investing in marketable securities and getting business loans from banks. Sources of Short-term Financing Short-term Financing can be raised by the company through: Ø Spontaneously Financing Ø Negotiating Financing Ø Spontaneously Financing Spontaneously financing is utilized by default in conducting the daily business’s obligations and operating expenses. Forms of Spontaneously Financing Ø Account Payable Ø Outstanding Expenses Ø Account...