Short$-$ and Long$-$Term Financing

Many companles secure financing from various sources with various payback periods. Not all funding sources are the same, and in

fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and

increased ownership in the firm which could result in lost control.

Select the appropriate financing term for each funding option.

Factoring

Short$-$term financing

Long$-$term financing

Bank loan of $3$ years

Short$-$term financing

Long$-$term financing

Bond

Short$-$term financing

Long$-$term financing