Contact us
Office location
Shop 2
99 – 103 Morayfield Road
Caboolture
QLD 4510
Postal address
PO Box 142
Morayfield
QLD 4506
Phone: 07 5495 4100
Fax: 07 5495 4188
Email:
Office location
Shop 2
99 – 103 Morayfield Road
Caboolture
QLD 4510
Postal address
PO Box 142
Morayfield
QLD 4506
Phone: 07 5495 4100
Fax: 07 5495 4188
Email:
Posted on August 18, 2019 by admin
Maintaining healthy cash flow can be challenging; between ongoing expenses and bills, poor cash flow can severely impact your customers, staff and bottom line. Business owners need to understand the differences between short and long-term financing when developing a cash flow strategy.
There are various sources of financing available, with each being useful for different situations. Choosing the right source and mix is key for good cash flow, with financing options often being classified into two categories based on time period: short-term and long-term. To find the right plan for you, determine your needs and then match a financing option to meet those needs.
Short-term financing:
Short term financing, or working capital financing, looks at needs that arise in relation to financing current assets – for a period of less than one year. Working capital is the funds that are used in the day-to-day trading operations of a business. Short-term financing can help you to pay suppliers, increase inventory and cover expenses when you do not have sufficient cash on hand.
Long-term financing:
Long-term financing options can help you invest in overall improvements to your business, for a period of more than 5 years. Capital expenditures, such as upgrading equipment, buying additional vehicles and renovating are funded using long-term sources of finance.
