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CHAPTER 9 SHORT-TERM FINANCING - Coggle Diagram
CHAPTER 9
SHORT-TERM FINANCING
Spontaneous Financing ( Internal financing)
Accruals
Trade credit (Account payable)
Direct Borrowing
line of credit/overdraft
Revolving Credit agreement
Transaction loan
cost of short term bank loans
Prime rate
Effective interest rate
Nominal interest rate
Compensation balance
Effective interest rate
collect basis-(simple interest method)
Discounted basis (discounted interest)
EIR
Loan with compensation
loan with compensating balance
loan with no compensating balance- straight loan
loan with compensation balance
EIR on revolving credit agreement (RCA)
EIR on commercial papers(CP)