Short term funding strategy calls for all working capital and a portion of fixed assets to be funded with short-term debt.

Question

Quizplus · Accepted Answer

Short term funding strategy is designed to finance working capital and some portion of fixed assets with short term debts that carry less interest and often require less collateral. This helps in reducing the overall cost of capital and provides the company with required liquidity to meet its short term obligations.

Short Term Funding Strategy Calls for All Working Capital and a Portion