Examples of short-term financing

Short-term financing, in fact, follows a model very similar to that of mini personal loans. Except in specific situations, loans are usually made for small amounts of money as a result of shorter repayment terms.

Short-term or working capital financing, as it is also known, is associated in some cases with certain financial practices such as confirming, which is a supplier payment service, factoring, whereby the company provides the lender with invoices pending collection in exchange for money, or the discounting of promissory notes or commercial paper. In this section, it is currently possible to find different types of short-term financing:

The financing offered by Aválam in the short term, allows companies to request working capital to face payments when the realization of these before generates situations of liquidity stress. Among its characteristics are the following:

Advantages and disadvantages of short-term financing

To access long-term financing, certain requirements must be met, such as a good credit history or the presentation of a sustainable project. For this reason, finance managers or managers in charge of the finance area must evaluate the projects they want to undertake very carefully, including an exhaustive risk analysis.

In order to make such a decision, it is necessary to make an extensive evaluation of the processes, objectives and needs of the company. It is also important to have a plan and to follow it.    This, together with good management by the board of directors, will guarantee the success of new projects or the solution of the problems presented.

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Long-term loans examples

In order to achieve personal or business goals, in some cases it is essential to obtain financing. However, there is not just one type of financing available. There is long-term and short-term financing; choosing the right one can be key to achieving your goals. Learn how to choose the best one for you.

Financing is a mechanism for a person or company to access funds that allow them to carry out their activities, investments and projects. It consists of the loan of an amount of money under the commitment to repay it in the future plus a certain interest rate that represents a percentage of the money lent.

There are different causes for a company or person to need financing, but they can all be encompassed in the same thing: they do not have the necessary money to carry out the projects or cover needs. For example:

On the other hand, there is the most well-known grouping and one of the most influential when deciding on the financing to use. It refers to the time granted for the repayment of the money and according to this they are classified into short term financing and long term financing.

Short-, medium- and long-term financing

In order to achieve personal or business objectives, in some cases it is essential to obtain financing. However, there is not just one type of financing available. There is long term and short term financing; choosing the right one can be key to achieving your goals. Learn how to choose the best one for you.

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Financing is a mechanism for a person or company to access funds that allow them to carry out their activities, investments and projects. It consists of the loan of an amount of money under the commitment to repay it in the future plus a certain interest rate that represents a percentage of the money lent.

There are different causes for a company or person to need financing, but they can all be encompassed in the same thing: they do not have the necessary money to carry out the projects or cover needs. For example:

On the other hand, there is the best known grouping and one of the most influential when deciding on the financing to use. It refers to the time granted for the repayment of the money and according to this they are classified into short term financing and long term financing.