Corporate Finance #7 Short Term Financing

Corporate Finance #7 Short Term Financing

Corporate Finance #7 Short Term Financing

Learn short term financing decision making from a Certified Public Accountant (CPA)

Language: english

Note: 4.6/5 (50 notes) 25,919 students

Instructor(s): Robert (Bob) Steele

Last update: 2022-02-17

What you’ll learn

  • List short term financing options
  • Understand accounts payable financing strategy
  • Explain bank credit options
  • Define commercial paper financing and when it may be used
  • Define collateral and explain how it may apply to short term financing
  • Understand accounts receivable financing
  • Explain inventory financing

 

Requirements

  • Have a understanding of basic financial accounting concepts

 

Description

This course will discuss short term financing options from a corporate finance perspective.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

Learners will understand accounts payable and trade credit as options from the perspective of short-term financing. A company’s cash management and financing strategy related to accounts payable would generally be to extend payment terms as long as possible without incurring penalties or straining the relationship with vendors.

We will also discuss credit options from a bank and commercial paper financing. When considering short-term credit options from a bank the company will want to consider the cost of the loan, the interest charged. One type of short-term loan is a term loan, credit often extended for one to seven years. Term loans are often repaid in monthly or quarterly installments.

Commercial paper is generally a short-term unsecured promissory note. Usually issued to the public in $25,000 minimum units.

This course will consider collateral as it relates to short-term financing. Collateral generally represents some form of asset securing the loan. Collateral may be used when a bank believes the loan is a higher risk.

We will also discuss accounts receivable and inventory financing.

 

Who this course is for

  • Finance students
  • Business professionals

 

Course content

  • Introduction
    • 805 Accounts Payable or Trade Credit
    • 810 Credit from Bank
    • 815 Commercial Paper Financing
    • 820 Collateral & Short-Term Financing
    • 825 Accounts Receivable Financing
    • 830 Inventory Financing
  • Practice Probs. – Short-Term Financing
    • OneNote Resource
    • 810 Cost of Not Taking Cash Discount Calculation
    • 812 Cost of Not Taking Cash Discount Example
    • 814 Effective Interest Rate
    • 816 Effective Rate on a Discounted Loan
    • 818 LIBOR Loan Effective Interest Rate
    • 819 Foreign Currency Borrowing & Effective Interest Rate
    • 820 Interest or Dollar Cost of Loan Calculation
    • 821 Net Credit Position
    • 822 Compensating Balance Loan
    • 825 Compensating Balance Loan with Idle Cash & Effective Interest
  • Excel Probs. – Short-Term Financing
    • 810 Cost of Not Taking Cash Discount Calculation
    • 812 Cost of Not Taking Cash Discount Example
    • 814 Effective Interest Rate
    • 816 Effective Rate on a Discounted Loan
    • 818 LIBOR Loan Effective Interest Rate
    • 819 Foreign Currency Borrowing & Effective Interest Rate
    • 820 Interest or Dollar Cost of Loan Calculation
    • 821 Net Credit Position
    • 822 Compensating Balance Loan
    • 825 Compensating Balance Loan with Idle Cash & Effective Interest

 

Corporate Finance #7 Short Term FinancingCorporate Finance #7 Short Term Financing

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