Working Capital Finance

Short-term Sources of Finance

Trade Credit
Accrued Expenses and Deferred Income
Bank Borrowings
Factoring of receivables
Commercial Paper
Trade Credit
Trade credit represents the credit extended by the
suppliers of goods and services. It is a spontaneous
source of finance.

The confidence of suppliers is the key to securing
trade credit.

The cost of trade credit is:
Discount % 360
x
100 Discount % Credit period Discount period