InvestorQ : How company uses their short term and long term finance
Raj Manoj Joshi made post

How company uses their short term and long term finance

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Riya Dwivedi answered.
3 years ago
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The balance sheet has two kinds of debt financing. There is long debt in the form of term loans and debentures/bonds issued by the company. Then there are short term borrowings in the form of working capital loans from banks, inter-corporate deposits (ICDs), commercial paper (CP), short term debt, etc.
Normally, the long term debt is used to fund capital assets, expansion of business, diversification to new product lines, etc. Short term fund is used to meet working capital needs, day-to-day expenses, accrued interest, taxes payable, etc.
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