Short-Term Financing

Difference between nominal rate of interest and effective rate of interest is given below: Nominal rate of interest: Nominal rate is an annual rate. The…

Trade Credit – An arrangement to buy goods or services on the account without making immediate cash payment. For many businesses, trade credit is an essential…

Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed…

Compensating Balance The financial accounting term restricted cash and compensating balances refers to monies that are reserved and not generally available to the company. Restricted…

Lines of credit and revolving credit are quite similar. These loan products are especially helpful for those building homes, remodeling, and paying off other debts.…

Trade Credit is an interim debt arising from credit sales and recorded as an account receivable by the seller and as an account payable by…