Short- & Medium-term finance

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Short- & Medium-term finance by Mind Map: Short- & Medium-term finance

1. Finance

1.1. Short-term

1.2. Medium-term

1.3. Long- term

2. External Financing-issues to consider

2.1. Cost

2.2. Gearing

2.3. Size of company

2.4. Current state of equity markets

2.5. Security available

3. Sources of finance (summary)

3.1. Equity (Long term)

3.1.1. Internally generated (retained earnings)

3.1.2. Ordinary shares

3.2. Debt

3.2.1. Long-term (e.g debentures, preference shares)

3.2.2. Medium- term (e.g leasing)

3.3. Other

3.3.1. Short-term (e.g trade cr, OD)

3.3.2. Government grants

4. Raising Short-Term finance

4.1. Sources of short-term finance

4.1.1. Bank Loans & OD

4.1.2. Trade credit

4.1.3. Factor finance

4.1.4. Bills of exchange

4.1.5. Acceptance credits

4.1.6. Commercial paper

5. Raising medium-term finance

5.1. Sources of medium finance

5.1.1. Bank loans

5.1.2. Leasing

5.1.2.1. Finance lease

5.1.2.2. Operating lease

5.1.3. Hire purchase

5.1.4. Sale & leaseback

6. Banks Criteria for lending CAMP ARI :

6.1. C = Character

6.2. A = Ability

6.3. M = Means

6.4. P = Purpose

6.5. A = Amount

6.6. R = Repayment

6.7. Interest / Insurance