Possibility of renewal by extension

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Reference no: EM13125621

Short term debt is riskier as stated by my classmates. However, it rates are more negotiable and lenders are willing to lend when the requirements are met. It helps businesses to quickly infuse some capital into the firm.

Short term debt has a few advantages such as the economical advantages of obtaining it at a short notice, the flexibility of being able to meet financial needs, and the possibility of renewal by extension.

Short-term debt is basically good when the debt that the company wants to incur is not large.

What options are available for a company to finance with short-term debt? Please pick one option and describe how and why it would be used.

Reference no: EM13125621

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