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Describe the three major sources of short-term financing.

Describe the three major sources of short-term financing.

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Answer #1

The major source of short term financing:
1. Short term loans.
For example: Getting a working capital loan from banks.
2. Factoring: Getting the debt receivable discounted by a factor.
3. 4. Bank overdraft: Withdrawing excess of amount from the bank (making the balance go below 0).
4. Trade creditors.
5. Bills discounting: Getting the bills receivable discounted near a bank.
6. Advance received from the customer.

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