Short Medium term finance

Short& Medium-term finance
Banks Criteria for lending CAMP ARI :
C = Character
A = Ability
M = Means
P = Purpose
A = Amount
R = Repayment
Interest / Insurance
Raising medium-term finance
Sources of medium finance
Bank loans
Leasing
Finance lease
Operating lease
Hire purchase
Sale & leaseback
Raising Short-Term finance
Sources of short-term finance
Bank Loans & OD
Trade credit
Factor finance
Bills of exchange
Acceptance credits
Commercial paper
Sources of finance (summary)
Equity (Long term)
Internally generated (retained earnings)
Ordinary shares
Debt
Long-term (e.g
debentures,
preference shares)
Mediumterm (e.g
leasing)
Other
Short-term (e.g trade cr, OD)
Government grants
External Financing-issues to consider
Cost
Gearing
Size of company
Current state of equity markets
Security available
Finance
Short-term
Medium-term
Longterm
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