--%>

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 : Explain Continuously Vacant Positions

    Continuously Vacant Positions: On July 1, the positions which were continuously vacant for six successive monthly pay periods throughout the prior fiscal year are abolished by the State Controller's Office. The six successive monthly

  • Q : Question based on multiplier Normal 0

    Normal 0 false false

  • Q : Describe Schedule 10R Schedule 10R

    Schedule 10R (Supplementary Schedule of Revenues and Transfers): The Department of Finance control document replicating information for transfers, revenues, and inter-fund loans for the past, present, and budget years. Schedule 10Rs i

  • 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 : Question based on change in GDP Normal

    Normal 0 false false

  • Q : What is Service Revolving Fund Service

    Service Revolving Fund: A fund employed to account for and finance most of the client services provided by the Department of General Services. The amounts expended by the fund are repaid by sales and services priced at rates adequate to keep the fund

  • Q : What is Proposition 98 Proposition 98 :

    Proposition 98: An initiative passed in the year November 1988, and amended in the year June 1990 election, which provides a minimum funding guarantee for school districts, community college districts, and other state agencies which give direct elemen

  • Q : Question on level of free market wage

    In the year of 1996, the U.S. Congress raised the minimum wage from $4.25 per hour to $5.15 per hour. Some of the people suggested that a government subsidy could help employers finance the higher wage. Assume the supply of low-skilled labour is specified by

  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

  • Q : Explain Feasibility Analysis

    Feasibility Analysis: It is an analysis of the ability to finish a project successfully, taking into account legal, technological, economic, scheduling and various other factors. Instead of just diving into a project and hoping for th