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

Advantages of development financial institutions, Advantages of Development...

Advantages of Development Financial Institutions Advantages or Functions or can say Case for Development Financial Institutions 1. They grant venture capital 2. They gra

Disadvantages of debt finance, Disadvantages of Debt Finance It is...

Disadvantages of Debt Finance It is a conditional finance that is it is not invested along with any approval of lender. Debt finance, whether used in excess may interr

Calculate the one period european call option, Question: a) A bank len...

Question: a) A bank lends you $1750 at an initial nominal yearly interest rate of 7.5% compounded semi-annually. However, the interest rate will rise to 9.2% after the first

Determine the component of return, Determine the Component of Return ...

Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci

Financial structure or dividend policies, Every time a listed company does...

Every time a listed company does a share buyback, investors and media alike would debate fiercely on the merits of such a scheme. There are investors who prefer buybacks to high

Basel committee on banking supervision, Question 1: ‘The Basel II frame...

Question 1: ‘The Basel II framework provides a range of options for determining the capital requirements for, inter-alia, credit risk and operational risk to allow banks and s

Origination fees, jack needs to borrow $1000 for the next year. Bank south ...

jack needs to borrow $1000 for the next year. Bank south will give him the loan at 9%. Suncoast will give him the loan at 7% with a $50 loan orgination fee. First national will giv

Capital Allocation, Consider the following capital market yielding 1% per y...

Consider the following capital market yielding 1% per year and a mutual fund consisting of 60% stocks and 40% bonds. expected return of stocks 9.75% per year and expected return on

Computing the real rate & flat tax, Quetion1: You are earning 5.2 percent ...

Quetion1: You are earning 5.2 percent on a certificate of deposit. Inflation is running 3.5 percent. What is the real rate of return on your investment? Question2: Search for

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