Lesson Plan

• Describe the key characteristics of short‑term and long‑term finance.
• Explain how the time horizon and purpose of a need determine the appropriate finance source.
• Compare typical uses, sources and costs of short‑term versus long‑term finance.
• Apply a simple decision‑making process to match a business need with the correct type of finance.

• Projector and screen
• PowerPoint slide deck summarising short‑ vs long‑term finance
• Printed comparison table handout
• Case‑study worksheets (business finance scenarios)
• Whiteboard and markers
• Sticky notes for quick polls

Begin with a quick poll: “If you needed cash today to pay wages, how would you get it?” Use responses to highlight immediate financing needs. Link this to prior learning about business cash‑flow and state that today’s success criteria are to identify when short‑term or long‑term finance is appropriate and justify the choice.

1. Do‑Now (5’) – Students list three reasons a business might need finance; share and cluster into short‑term vs long‑term.
2. Mini‑lecture (10’) – Present key features, uses and sources of short‑term finance using slides.
3. Mini‑lecture (10’) – Present key features, uses and sources of long‑term finance.
4. Comparison activity (10’) – In pairs, complete the handout table comparing the two finance types; discuss answers.
5. Decision‑making simulation (15’) – Groups work through a case study, follow the 6‑step planning process, and decide which finance type fits.
6. Check for Understanding (5’) – Quick quiz via Kahoot or sticky‑note exit tickets on distinguishing characteristics.

Recap the main differences between short‑term and long‑term finance and why matching finance to need reduces cost and risk. Students complete an exit ticket stating one scenario where each type of finance would be appropriate. Assign homework: research a real company’s recent financing decision and classify it as short‑ or long‑term.