--%>
Assignment Help - homework help

Pros and cons of commercial paper associated to bank loans

Describe pros and cons of commercial paper associated to bank loans for a company seeking short-term financing?
Usually commercial paper is a cheaper source of short-term financing for a firm, compared to bank loans. Also, a larger amount of funds can frequently be raised by issuing commercial paper. Bank loans are typically a more flexible source of short-term financing and establishing an on-going business relationship along with a bank may prove beneficial while money is tight.

   Related Questions in Finance Basics

  • Q : Describe risk aversion Describe risk

    Describe risk aversion? Risk aversion is the tendency to ignore additional risk. Risk-averse people will ignore risk if they can, unless they attain additional compensation for letting that risk. In finance, the added compensation is a higher ex

    		•
  • Q : Explain Section 26.00 Section 26.00 :

    Section 26.00: It is a Control Section of Budget Act which gives the authority for the transfer of funds from one class, program or function in a schedule to the other category, program or function in the similar schedule, subject to particular limita

    		•
  • Q : Resources flow Normal 0 false false

    Normal 0 false false

  • Q : Explain Merger Merger : A merger takes

    Merger: A merger takes place whenever two companies unite to form a single company. This is very alike to an acquisition or takeover, apart from that the existing stock-holders of both companies comprised retain a shared interest in the latest corpora

    		•
  • Q : Excess reserves Normal 0 false false

    Normal 0 false false

  • Q : What is Sinking Fund Sinking Fund : It

    Sinking Fund: It is a fund or account in which money is deposited at customary intervals to offer for the retirement of bonded debt.

    		•
  • Q : Describe who owns a credit union

    Describe who owns a credit union? Credit unions are owned through their members. While credit union members put money in their credit union, they are not "depositing" the money technically.  In spite of, they are purchasing shares of the cr

    		•
  • Q : Explain Budget Cycle Budget Cycle : The

    Budget Cycle: The time period needed to made a state financial plan and enacts that part of it applying to the budget year. The Significant events in the cycle comprise: • The preparation of G

    		•
  • Q : Explain Urgency Statute or Legislation

    Urgency Statute or Legislation: It is a measure which includes an “urgency clause” requiring it to take effect instantly on the signing of the measure by the Governor and the filing of the signed bill with the Secretary of State. The Urgen

    		•
  • Q : Reimbursement Warrant or Revenue

    Reimbursement Warrant (or Revenue Anticipation Warrant): A warrant which has been sold by the State Controller’s Office, as an outcome of a cash shortage in th

    		•