Which type of financing does it need?- Trade credit- Accounts receivable- Inventory-

Which type of financing does it need?

- Trade credit

- Accounts receivable

- Inventory

-

Bank loan

———

What is an advantage of short-term financing?

- Restrictive loan requirements

- Increased liquidity

- Multiyear repayment terms

- Lower interest rates

———

A company plans to expand into new sales territories and decides to obtain a long-term

loan.

What is an advantage of long-term financing?

- Lowers leverage by paying more interest

- Increases stockholder ownership

- The interest is tax deductible

- Creditors prefer companies with lower equity levels