Tuesday, December 6th 2016

What is Short Term Financing?

Short term financing for corporations are used to cover very short term obligations such as: bridge financing, payroll, inventory or to cover receivables. The rate is often determined by the length of time of the loan (typically less than 6 months) and the credit rating of the collateral backing the financing. Popular access points for short term financing are from the commercial paper markets or directly borrowing from money market funds.

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