comapre long and short term fiancing. Describe situations in which each type of financing would be used.

By: Guest
Date: Fri-May-29-2009-
Response
0
Long-term financing is generally used when the collateral will appreciate or not lose value. For example, a mortgage on a house is a form of long-term financing - 30 years or more.Conversely, short term financing is used on automobiles because they depreciate rapidly - generally autos are not financed more than 5 years.Unsecured loans need to be short term because the environment could change rapidly.Loans on stock and bond portfolios will be short term because of the fluctuations.Land - long-term financing. Land will generally appreciate.ATV financing - short term - too much depreciation.I hope this helps !
[d] By: Guest
Date: Sat-Oct-17-2009
Response
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