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Long term short term financing
Long-Term & Short-Term Financing Financing is a very important part of every business. Firms often need financing to pay for their assets, equipment, and other important items. Financing can be…
Working capital management
Working Capital Management Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is…
Why firms hold cash
Why Firms Hold Cash Economist John Maynard Keynes suggested three main reasons why firms hold cash. The three reasons are for the purpose of speculation, precaution, and transactions. All of…
Float
Float Float is the existing difference between the given book balance and the actual bank balance of an account. For example, you open a bank account, say, with $500. You…
Ways to manage cash
Ways to Manage Cash Firms need to manage cash in almost all areas of operations that have anything to do with cash. The goal of the firm is to get…
What is trade finance
What is trade finance? There are various definitions to be found online as to what trade finance is, and the choice of words used is interesting. It is described both…
What is trade finance
What is trade finance? There are various definitions to be found online as to what trade finance is, and the choice of words used is interesting. It is described both…
International trade method
International Trade Finance In its simplest form, trade finance works by reconciling the divergent needs of an exporter and importer. While an exporter would prefer to be paid upfront by…
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