Page 278 - FM Integrated WorkBook STUDENT 2018-19

Chapter 15

Short-term sources of finance

 Bank overdrafts (flexible, only used when needed)

 Bank loans (secure, may only be available if have assets to use as security)

 Better management of working capital (profitability vs liquidity decisions)

 Leasing (spread the cost of the asset)

 Sale and leaseback (generates cash to be used for other purposes)

268