Advantages of overdraft finance, Finance Basics

Advantages of Overdraft Finance

1. It is useful in financial crisis such an accountant cannot forecast because of abrupt fall in profits so liquidity problems.

2. In some cases it may be safe on goodwill therefore creating it flexible finance.

3. It does not entail preconditions and is consequently investible in high-risk situations whenever the firm would not have finance in normal circumstances.

4. It is raised faster and as common is ideal to invest in critical ventures as an example of documentary investments and e.g. of shares housing bonds, treasury bonds and bills etc.

5. Whether not used for a long duration of time - it does not affect the company's gearing level and consequently does not relate to company's liquidation or receivership.

6. Less formalities/procedures included.

Posted Date: 1/29/2013 5:06:38 AM | Location : United States







Related Discussions:- Advantages of overdraft finance, Assignment Help, Ask Question on Advantages of overdraft finance, Get Answer, Expert's Help, Advantages of overdraft finance Discussions

Write discussion on Advantages of overdraft finance
Your posts are moderated
Related Questions
EOQ Assumptions The basic EOQ model creates the following supposition as: i) The demand is identified and constant over the year ii) The ordering cost is con

DO YOU HAVE A SAMPLE BALANCE SHEET

The Morris Corporation has $ 600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris’s annual sales are $# million, its average tax rate is 40% and its net


Problem: Cash Flow Analysis For the attached Gantt chart, the following information is available: Invoices are sent at the end of each month. Mark up is 20% on each invoi

Volpe Corporation produces class rings to sell to college and high school students. These rings sell for $75 each, and cost $30 each to produce. Volpe Corporation has fixed costs o

Explain the term- Order Brokers receive numerous different types of buying and selling orders from their customers. Brokerage orders very as to the price at which order may


Fixed income security can be defined as the financial obligation of an entity (known as the issuer), which promises to pay a specified amount of money on a pre-sp