Sources of short term finance

1) Trade creditors

2) Factoring

Factoring involves raising funds on the security of the company’s debts, so that cash is received earlier than if the company waited for the debtors to pay. Most factoring companies offer these three services:

3) Invoice Discounting

4) Bank Overdraft

5) Counter Trade

Composition of Short-Term Financing

The best mix of short-term financing depends on:

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