Short term payday loans fixed assets ;

25-Jun-2015 07:16 PM


Posts: 13

In anticipation of the holiday season, the toy manufacturer toy created in September-November, the increase in inventory. The toy store bought toys Toy Company in our credit, increased sales and short term payday loans accounts of the toy manufacturer claims. The toy store probably pays toy manufacturers in January, after the Christmas season is over. The toy company has to finance this seasonal difference between the creation of goods and cash reception time. This is when the short-term funding is needed.

Short term loans for bad credit financing, term of over 12 months, which is mainly used for long-term assets. The most common use is for the purchase of fixed assets. If a company to acquire new equipment to be used across multiple operating cycles, funding is needed long term. Ideally, funding has a period equal to the life of the purchased equipment. A company does not want to buy a short term loan, new equipment because commit a lot of money, which could significantly impede the flow of cash. If a small company bought $ 100,000 piece of equipment withshort term loans financing earlier this year, they probably would have run out of money before the end of the year and to limit growth or to borrow more money. If you have received long-term purchase of equipment funding, the company would not have undertaken to pay $ 100,000 in 12 months or less and are likely to have problems of liquidity avoided. 

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