Advantages of overdraft finance, Finance Basics

Assignment Help:

Advantages of Overdraft Finance

1. It is useful in financial crisis such an accountant cannot forecast because of abrupt fall in profits so liquidity problems.

2. In some cases it may be safe on goodwill therefore creating it flexible finance.

3. It does not entail preconditions and is consequently investible in high-risk situations whenever the firm would not have finance in normal circumstances.

4. It is raised faster and as common is ideal to invest in critical ventures as an example of documentary investments and e.g. of shares housing bonds, treasury bonds and bills etc.

5. Whether not used for a long duration of time - it does not affect the company's gearing level and consequently does not relate to company's liquidation or receivership.

6. Less formalities/procedures included.


Related Discussions:- Advantages of overdraft finance

What are the advantages of placement, What are the Advantages of placement ...

What are the Advantages of placement Placement has the below benefits: (i) Timing of issue is significant for successful floatation of shares. In a depressed market cond

Define the term - finding a broker, Define the term - Finding a Broker ...

Define the term - Finding a Broker Selection of a broker depends largely on the kind of services rendered by a specific broker as well as upon the type of transaction that a

Financial planning processes, explain the financial planning process in a p...

explain the financial planning process in a private limited company

Leverage or gearing ratios, Leverage or Gearing Ratios Leverage or gea...

Leverage or Gearing Ratios Leverage or gearing ratios are as follow: a) Debt ratio = Total debts/Total assets Whereas total debt = fixed charge capital + liabilities.

Example of valuation of bonds and debentures, Example of Valuation of Bonds...

Example of Valuation of Bonds and Debentures K is contemplating purchasing a 3 year bond worth 40,000/= carrying a nominal coupon rate of interest of 10 percent.  K necessary

Illustrate the advantages of underwriting, Illustrate the Advantages of Und...

Illustrate the Advantages of Underwriting Underwriting presumes great significance as it offers the below benefits to the issuing company: (i) Issuing company is relied f

Cash budgeting, what is cash budgeting and what is it used for

what is cash budgeting and what is it used for

Setting a reorder point - rop, Setting a Reorder Point - ROP  Once the...

Setting a Reorder Point - ROP  Once the order quantity has been determined, the next question to be settled is when to place the order. If an order is released and it takes th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd