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. Banks Criteria for lending CAMP ARI :

3.1. C = Character

3.2. A = Ability

3.3. M = Means

3.4. P = Purpose

3.5. A = Amount

3.6. R = Repayment

3.7. Interest / Insurance

4. Sources of finance (summary)

4.1. Equity (Long term)

4.1.1. Internally generated (retained earnings)

4.1.2. Ordinary shares

4.2. Debt

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

4.2.2. Medium- term (e.g leasing)

4.3. Other

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

4.3.2. Government grants

5. Raising Short-Term finance

5.1. Sources of short-term finance

5.1.1. Bank Loans & OD

5.1.2. Trade credit

5.1.3. Factor finance

5.1.4. Bills of exchange

5.1.5. Acceptance credits

5.1.6. Commercial paper

6. Raising medium-term finance

6.1. Sources of medium finance

6.1.1. Bank loans

6.1.2. Leasing

6.1.2.1. Finance lease

6.1.2.2. Operating lease

6.1.3. Hire purchase

6.1.4. Sale & leaseback