Short term financing refers to arranging external funds to meet a firm's needs for one year or less. Firms may need short term financing if their cash flow from operations is insufficient for growth or they prefer borrowing now rather than waiting to save enough. Common sources of short term financing include trade credit, accrued expenses, bank financing like overdrafts and loans, commercial paper, and factoring. Factoring involves a firm selling its account receivables to a third party for cash flow.

1. SHORT TERM FINANCING SUBMITTED TO Prof. Puneet Sir PRESENTED BYRaghvendra(37) Mohd. Yamin(24)

2. Financing is defined as a means of obtaining the resources to purchase an item, then paying back the loan in a set time period for a set monthly, weekly, yearly.What is Financing ?????????????

3. Arranging of available External funds to meet the needs of a firm for a year or less time. What is short term financing?????????

4. Cash flow from operations may not be sufficient to keep up with growth-related financing needs.

5. Firms may prefer to borrow now for their inventory or other short term asset needs rather than wait until they have saved enough.

6. Firms may prefer short-term financing instead of long-term sources of financing.Why Do Firms Need Short-term Financing ????

7. Trade credit

8. Accrued expenses

9. Bank financing

10. Factoring

11. Commercial paper Sources

12. It is a credit that a customer gets from supplier of goods.

13. It is the spontaneous source o financing.

14. In this the buying firm don’t pay immediately.

15. Deferral of payments is a short- term financing called “Trade Credit.” 1. Trade credit

16. Benefits 1- Easy availability 2- Flexibility 3- InformalityCosts1- typically receive a discount, if you pay early 2- the cost is in the form of the lost discount, if you don’t take it.Pros and Cons

17. It represents the liability that a firm has to pay for those services which have been received earlier.Accrued wages and salaries

18. Accrued taxes and interest2. Accrued expenses

19. 3.Bank financingBank overdraft

20. Cash credit

21. Purchase and discounting of bills

22. Short term loan

23. Letter of creditIt is unsecured money market instruments issued in the form of a promissory note. It was introduced in India in 1990.

24. RBI regulates the Commercial paper.

25. Corporates, primary dealers, Indian financial institution are eligible to issue it.

26. A corporate firm can be eligible to offer a Commercial paper if it has the value of 10 crore.

27. Maturity of Cp in india is 91 to 180 days. 4. Commercial paper

28. It is financial transaction where a firm sells its account receivable to any third party.

29. It emphasizes on the receivable financial assets

30. It involves the purchase of financial assets

31. It involves three parties

32. Period for factoring is 90 to 150 days.5.Factoring

33. In indian market you can get factoring as low as 1000.

34. Bed debts are not considered in factoring.

35. CanbankFactors Limited

36. SBI Factors and Commercial Services Pvt. Ltd

37. The Hongkong and Shanghai Banking Corporation Ltd

38. Foremost Factors Limited

39. Global Trade Finance Limited

40. Export Credit Guarantee Corporation of India Ltd

41. Citibank

42. SIDBI

43. Standard Chartered BankFactoring companies in India