Short Term FinancingShort Term Financing

Definition: financing for less than a year.

Two sources of short-term financing: Unsecured short-term financing

Secured short-term financing

Categories of unsecured short-term financing Trade Credit

Line of Credit

Bank Loan

Commercial Papers

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Short Term Financing (con...)Short Term Financing (con...)

Categories of Secured Short-term Financing• Pledging the Account Receivable

• Factoring the Account Receivable

• Inventory Loans:

» 1. Floating Lien (Blanket Lien)

» 2. Trust Receipt (Chattel Mortgage)

• Field warehousing

• Public warehousing (Terminal Warehouse Agreement)

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International Short Term International Short Term FinancingFinancing

1. Intercompany financing

2. Local currency financing

3. Euronotes and Euro-commercial papers

4. Funds from parent company

5. Funds from operation

6. Loan from sister subsidiary

7. Loan from local and international banks

8. Currency swaps

9. Link financing (third strong currency company

guarantees loan)

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International Short Term International Short Term Financing (con...)Financing (con...)

10. Edged Act and agreement banking

11. International Banking Facilities

12. Joint Venture

13. World Bank and IMF

14. Regional Development Bank, such as Inter-American

Development Bank

15. Export / Import Bank

16. Agency for International Development (AID)

17. OPIC

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