Скачать или смотреть Short Term Financing Part 1 (Chapter # 11) | Prof. Muhammad Asif Ch.

*Short Term Financing Explained: A Simple Overview*

In this video, we’ll explore the concept of **short-term financing**, a crucial aspect of business operations.

Short-term financing refers to funds borrowed for a **short period**, usually less than a year, to cover temporary financial gaps. Businesses often use it to manage day-to-day operations or unexpected expenses without needing to commit to long-term debt.

There are various types of short-term financing, including:

1. *Lines of Credit* – Flexible loans where businesses can borrow up to a certain limit and repay as they go.
2. *Trade Credit* – When suppliers allow businesses to delay payments for goods or services.
3. *Short-term Loans* – Fixed loans that need to be repaid quickly, usually within months.
4. *Factoring* – Selling accounts receivable to a third party at a discount for immediate cash.

Short-term financing is beneficial because it’s quick to secure and provides **immediate access to funds**. However, businesses need to be cautious, as high-interest rates or quick repayment schedules can put pressure on cash flow.

We’ll also discuss the *pros and cons* of using short-term financing, including its flexibility, but also potential risks like accumulating debt or higher interest rates.

Watch this video to get a better understanding of how businesses use short-term financing to stay afloat and keep their operations running smoothly. Don’t forget to like, subscribe, and comment below with any questions!

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