GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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start-up financing
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venture capital
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short-term financing
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long-term financing
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Detailed explanation-1: -Working capital is the money used to cover all of a company’s short-term expenses, which are due within one year.
Detailed explanation-2: -Short-term financing means taking out a loan to make a purchase, usually with a loan term of less than one year. There are many different types of short-term financing, the most common of which are “Buy Now, Pay Later, ‘’ “Unsecured Personal Loans, ‘’ and “Payday Loans.”
Detailed explanation-3: -Short term finance refers to financing needs for a small period normally less than a year. In businesses, it is also known as working capital financing. This type of financing is normally needed because of uneven flow of cash into the business, the seasonal pattern of business, etc.
Detailed explanation-4: -Short-term finance The cost of cashflow finance/invoice factoring will often include a charge, similar to an interest charge, which is calculated as a percentage of the loan value (typically between 2.5% and 3.5% over base rate).