Business – 5.1 Business finance – The need for business finance | e-Consult
5.1 Business finance – The need for business finance (1 questions)
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Short‑term finance refers to funding required for a period of up to 12 months, usually to cover working‑capital needs such as inventory purchase, payroll or temporary cash‑flow gaps.
- Overdraft facility
- Trade credit from suppliers
Long‑term finance is capital raised for periods exceeding one year, generally to fund fixed‑asset investment, expansion projects or major restructuring.
- Bank term loan (5‑10 years)
- Equity issue (share capital)