Corporate Finance #7 Short Term Financing

Explore Short-Term Financing Options for Businesses

This course provides a comprehensive look at short-term financing strategies from a corporate finance perspective. You'll gain practical skills through numerous example problems, presented in both presentation format and hands-on Excel worksheets.

What You'll Learn:

• Accounts Payable & Trade Credit: Understand how to leverage accounts payable and trade credit as key short-term financing tools. Learn how companies strategically manage payment terms to optimize cash flow without damaging vendor relationships.
• Bank Credit Options: Delve into bank credit solutions, analyzing the cost of a loan and associated interest charges. We'll cover term loans, typically extending credit for 1-7 years with monthly or quarterly repayments.
• Commercial Paper Financing: Discover commercial paper, a common short-term unsecured promissory note often issued to the public in minimum units of $25,000.
• Collateral in Short-Term Financing: Learn about the role of collateral as an asset securing a short-term loan. Understand when banks require collateral, particularly for higher-risk loans.
• Accounts Receivable & Inventory Financing: Explore strategies for utilizing accounts receivable and inventory financing to bolster your company's short-term liquidity.

Course Features:

• Downloadable Excel Workbooks: Each module includes a downloadable Excel workbook with at least two tabs: one providing answers and the second offering a preformatted worksheet for step-by-step practice.
• Instructional Videos: Benefit from clear, concise instructional videos to guide you through each concept and problem.
• Practical Application: Reinforce your understanding with real-world examples and practical exercises.

This course is designed to equip you with the knowledge and skills to make informed decisions about short-term financing and optimize your company's financial performance.