5 types of short term financing a company may use employ to help finance its operations?

Alexander Villas: 5 types of short term financing a company may use employ to help finance its operations:-------- ------------- ----------------- ------------------- --------------- ----------- -------------- -------a. BanksIt is always wise for the management of a company to develop a good working relationship with the local banker because banks are excellent sources of short term funding. Banks offer revolving credit lines that can be drawn down and repaid numerous times without re-applying for credit, and they are generally less expensive than credit cards. b. Finance CompaniesReceivables factoring and invoice discounting are two ways finance companies provide short term financing. When they factor your receivables, they buy your invoices at a fairly steep discount and conduct any collection activities needed. This is an expensive manner of obtaining funding because the finance company is taking on the risk of collection, and many companies factor only their slow pay! ing invoices. Invoice discounting involves using your invoices as collateral for short term borrowing. c. Trade CreditThe best way to finance inventories is through trade credit, which is the number of days your vendor will allow before payment is due on your invoices. For a new customer, most vendors will require cash-on-delivery. Read more: http://www.ehow.com/list_5805548_advantages-short-...d. Public deposits:The public deposits refer to the deposits that are attained by the numerous large and small firms from the public. The public deposits are generally solicited by the firms in order to finance the working capital requirements of the firm.http://finance.mapsofworld.com/corporate-finance/m...e. Commercial Papers:Commercial paper is a money-market security issued (sold) by large corporations to get money to meet short-term debt obligations (for example, payroll), and is backed only by an issuing bank or corporation's promised to pay the face amount on the maturity da! te specified on the note. .).[2]http://en.wikipedia.org/wiki/C! ommercial_paper.....Show more