Sources of Short & Long Term Financing

Short-term capital may be accessed through the money market. Institutions in the money market include commercial banks, merchant banks, credit unions and discount houses. Borrowers are required to repay within a short-term e.g. 1 to 5 years.

Long –term capital may be accessed through building societies, the stock exchange, unit trust companies and development banks. Borrowers are given a much longer repayment periods e.g. up to 20 years.

Tell a friend

Leave a Reply