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How Financial

Financial institutions provide financing for firms through a variety of methods. Banks provide short-term financing through methods like trade credit, commercial loans, and lines of credit. Long-term financing comes from sources such as bonds, commercial mortgages, and private equity/venture capital firms who invest directly in companies. Together, these financial institutions play a key role in providing both short and long-term capital that companies need to operate, grow, and invest.

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383 views1 page

How Financial

Financial institutions provide financing for firms through a variety of methods. Banks provide short-term financing through methods like trade credit, commercial loans, and lines of credit. Long-term financing comes from sources such as bonds, commercial mortgages, and private equity/venture capital firms who invest directly in companies. Together, these financial institutions play a key role in providing both short and long-term capital that companies need to operate, grow, and invest.

Uploaded by

AngelicaHermoParas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Figure: How Financial Institutions Provide Financing for Firms (Gitman & Zutter, 2012)

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