Chapter 19
Overview of Short-Term Financing
By Boundless
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Short-term loans offer individuals and businesses borrowing options to meet financial obligations.
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Credit cards allow users to pay for goods and services based on the promise to pay for them later and the immediate provision of cash by the card provider.
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Factoring makes it possible for a business to readily convert a substantial portion of its accounts receivable into cash.
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Commercial paper is a money-market security issued (sold) by large corporations to get money to meet short term debt obligations.
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A secured loan is a loan in which the borrower pledges an asset (e.g. a car or property) as collateral, while an unsecured loan is not secured by an asset.
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Asking friends and families to invest is one way that start-ups are funded.
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A commercial bank lends money, accepts time deposits, and provides transactional, savings, and money market accounts.
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Trade credit is the largest use of capital for a majority of B2B sellers; Accounts Payable is money owed by a firm to its suppliers.