This course will discuss short term financing options from a corporate finance perspective.

We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.

Learners will understand accounts payable and trade credit as options from the perspective of short-term financing. A company’s cash management and financing strategy related to accounts payable would generally be to extend payment terms as long as possible without incurring penalties or straining the relationship with vendors.

We will also discuss credit options from a bank and commercial paper financing. When considering short-term credit options from a bank the company will want to consider the cost of the loan, the interest charged. One type of short-term loan is a term loan, credit often extended for one to seven years. Term loans are often repaid in monthly or quarterly installments.

Commercial paper is generally a short-term unsecured promissory note. Usually issued to the public in $25,000 minimum units.

This course will consider collateral as it relates to short-term financing. Collateral generally represents some form of asset securing the loan. Collateral may be used when a bank believes the loan is a higher risk.

We will also discuss accounts receivable and inventory financing.