Jomary C.

Brequillo
MBA107- FINMAN
NARRATIVE REPORT

CHAPTER 16 SHORT TERM BUSINESS FINANCING

STRATEGIES FOR FINANCING WORKING CAPITAL

Working capital financing strategies are methods of obtaining funds to finance
the working capital of a business. There are three broad strategies for working capital
financing: conservative, aggressive, and hedging.
Maturity-Matching Approach
The Maturity-Matching Approach is a strategy of working capital financing that
involves matching assets and liabilities that have the same maturity terms. The
underlying principle is that each asset should be financed with a financial instrument
having almost the same maturity. The maturity matching principle is the concept that a
firm should finance current assets with short-term liabilities and fixed assets with long-
term liabilities.
Companies that take a maturity-matching approach match assets and liabilities
that have the same maturity terms. This means that assets balance with liabilities on
either a short-term or long-term basis. Using this approach, companies do not fund a
short-term asset with a long-term liability, for example.
To determine the amount of working capital required, businesses can use the
percentage of revenue or sales method, regression analysis, or the operating cycle
method. Once the amount of working capital required is determined, businesses can
choose between short-term and long-term sources of capital. Short-term funds are
cheaper than long-term funds but are riskier in terms of refinancing and rising interest
rates.
Aggressive approach
The aggressive approach is a strategy of working capital financing that finances
only temporary working capital. Companies that take an aggressive approach match
assets and liabilities that have the same maturity terms. This means that assets balance
with liabilities on either a short-term or long-term basis. Using this approach, companies
do not fund a short-term asset with a long-term liability, for example.
To determine the amount of working capital required, businesses can use the
percentage of revenue or sales method, regression analysis, or the operating cycle
method. Once the amount of working capital required is determined, businesses can
choose between short-term and long-term sources of capital. Short-term funds are
cheaper than long-term funds but are riskier in terms of refinancing and rising interest
rates.
Conservative Approach
The conservative approach is a risk-free strategy of working capital financing. A
company adopting this strategy maintains a higher level of current assets and,
therefore, higher working capital. The long-term sources of funds, such as equity,
debentures, term loans, etc., finance the major part of the working capital. This
approach relies more heavily on long-term financing than do the other approaches.
Factors Affecting Short-Term Financing
Operating Characteristics
Whether the firm uses an aggressive approach, a conservative approach, or
maturity matching depends on an evaluation of many factors. The company’s operating
characteristics will affect a firm’s financing strategy. Other factors having an impact
include cost, flexibility, the ease of future financing, and other qualitative influences.
Mix of Current and Fixed Assets
The mix of current and fixed assets refers to the combination of short-term and
long-term assets that a company holds. Current assets are short-term assets that are
typically used up in less than one year, such as cash, accounts receivable, inventory,
and prepaid expenses. Fixed assets are long-term, physical assets, such as property,
plant, and equipment (PP&E), that have a useful life of more than one year.
The mix of current and fixed assets is important because it affects a company’s
liquidity, solvency, and profitability. A comlpany with a higher proportion of current
assets to fixed assets has a higher liquidity ratio, which means it has more cash
available to pay off its short-term debts. On the other hand, a company with a higher
proportion of fixed assets to current assets has a higher solvency ratio, which means it
has more assets available to pay off its long-term debts.
Size and age of a firm

The size and age of a firm are two important factors that can affect short-term
financing. Smaller firms may have difficulty obtaining short-term financing because they
may not have the same level of creditworthiness as larger firms. In addition, younger
firms may not have a long enough track record to demonstrate their ability to repay
loans 1.
Larger firms, on the other hand, may have an easier time obtaining short-term
financing because they have a longer track record and are generally considered more
creditworthy. However, larger firms may also have more complex financing needs,
which can make it more difficult to obtain financing.
 Growth and profitability
Growth and profitability are two important factors that can affect short-term
financing. Profitability is the ability of a company to generate profits, while growth is the
ability of a company to increase its size and expand its operations.
Profitability is important because it helps companies generate cash flow, which
can be used to finance short-term debt. However, growth is also important because it
can help companies increase their market share and generate more revenue in the long
run.
In general, companies that are profitable and growing are more likely to be able
to obtain short-term financing than companies that are not profitable or growing.
However, companies that are growing too quickly may have difficulty obtaining short-
term financing because they may not have the cash flow to support their growth.
Seasonal variation
Seasonal variation is an important factor that can affect short-term financing.
According to a report by Finance Strategists, time series analysis is concerned with the
numerical ways that the past can be used to forecast the future. It is useful as a tool to
help forecast future sales, but it can also be used in other circumstances. In a nutshell,
the idea of time series analysis is based on the assumption that in the future, data will
continue to move in the same direction as they did in the past.
In addition, seasonal trends can also affect short-term financing. For example,
rates tend to be lower in spring and fall, and higher in winter and summer, and
corporations and individuals try to obtain major financing when rates are lowest. Spring
is historically the prime home-buying season, which leads to a sharp increase in
applications for home mortgages during March, April, and May.
Sales trend
The sales trend of a company can have a significant impact on its short-term
financing. According to a report by Finance Strategists, time series analysis is
concerned with the numerical ways that the past can be used to forecast the future. It is
useful as a tool to help forecast future sales, but it can also be used in other
circumstances. In a nutshell, the idea of time series analysis is based on the
assumption that in the future, data will continue to move in the same direction as they
did in the past.
Cyclical Variations
Cyclical variations are fluctuations in the economy that occur over a period of
time. According to an article by Investopedia, cyclical risk is the risk of business cycles
or other economic cycles adversely affecting the returns of an investment, an asset
class, or an individual company’s profits.

In addition, a report by the International Monetary Fund highlights that changes in

“structural elements that have the most direct effect on prices –the rate of interest and
the value of money” were the main sources of economic fluctuations.
Other Influences in Short-Term Financing
Other factors that can influence short-term financing include the creditworthiness
of the borrower, the availability of collateral, and the overall economic environment. For
instance, if a borrower has a poor credit score, they may have difficulty obtaining short-
term financing, or they may be charged a higher interest rate. Similarly, if a borrower
does not have sufficient collateral to secure a loan, they may be denied financing or
charged a higher interest rate. Finally, the overall economic environment can also
impact short-term financing, as changes in interest rates, inflation, and other economic
factors can affect the availability and cost of financing.
Providers of Short-Term Financing
Businesses can attempt to obtain short-term financing from a number of different
providers and by a number of methods. Some sources are financial institutions, such as
banks, which lend to firms for working capital and long-term purposes (such as
equipment loans).
Bank Lines of Credit
Bank lines of credit are a popular source of short-term financing for businesses.
A line of credit is a preset borrowing limit that can be tapped into at any time. The
borrower can take money out as needed and pay interest only on the amount borrowed.
A short-term line of credit is a business line of credit with a loan term between six
months and one year. With a short-term line of credit, you can draw from a pool of funds
whenever you need capital. Once you pay back what you took out, plus interest, you
can dip into the full amount of the credit line once more.
Short-term lines of credit can provide your business with a quick capital injection
to cover unforeseen expenses or capitalize on a new business opportunity. This can be
an ideal financing solution for small businesses that have to contend with fluctuating
cash flows and that might not have a lot of collateral to offer up.
There are several sources of short-term financing available to businesses, such
as bank lines of credit, invoice financing, and merchant cash advances. However, bank
lines of credit are a popular choice for businesses because they offer flexibility and
convenience.
Computing interest rates
 Computing interest rates involves calculating the amount of interest charged by
lenders to borrowers for the use of money, expressed as a percentage of the principal,
or original amount borrowed. There are several methods for calculating interest rates,
such as the percentage of revenue or sales method, regression analysis, or the
operating cycle method.
To calculate interest rates, you can use the interest formula to get your rate,
convert the interest rate to a percentage by multiplying it by 100, and refer to your most
recent statement to fill in the interest equation. Make sure that your time and your rate
are on the same scale, and use online calculators to find rates for complex loans, like
mortgages.
Revolving credit agreement
A revolving credit agreement is a financing agreement made between a lending
institution and a borrower. In this type of agreement, the borrower is approved for a
certain amount of funds that they can use at their discretion as long as regular
payments are made towards the line of credit. Revolving credit lines are a popular
source of short-term financing for businesses. A line of credit is a preset borrowing limit
that can be tapped into at any time. The borrower can take money out as needed and
pay interest only on the amount borrowed. A short-term line of credit is a business line
of credit with a loan term between six months and one year. With a short-term line of
credit, you can draw from a pool of funds whenever you need capital. Once you pay
back what you took out, plus interest, you can dip into the full amount of the credit line
once more.
Short-term lines of credit can provide your business with a quick capital injection
to cover unforeseen expenses or capitalize on a new business opportunity. This can be
an ideal financing solution for small businesses that have to contend with fluctuating
cash flows and that might not have a lot of collateral to offer up.
There are several sources of short-term financing available to businesses, such
as bank lines of credit, invoice financing, and merchant cash advances. However, bank
lines of credit are a popular choice for businesses because they offer flexibility and
convenience.
Small Business Administration
The Small Business Administration (SBA) provides several financing options for
small businesses, including short-term loans. One such program is the Microloan
program, which provides small businesses with small, short-term loans of up to $50,000
for working capital, or to buy inventory, supplies, furniture, fixtures, machinery, and
equipment. The SBA also offers Express Bridge Loans of up to $25,000 to small
businesses that have an urgent need for cash while waiting for a decision on their long-
term loan application.
 In addition to SBA loans, there are several other sources of short-term financing
available to businesses, such as bank lines of credit, invoice financing, and merchant
cash advances. Short-term financing can provide your business with a quick capital
injection to cover unforeseen expenses or capitalize on a new business opportunity.
This can be an ideal financing solution for small businesses that have to contend with
fluctuating cash flows and that might not have a lot of collateral to offer up.
Nonbank Short-Term Financing Sources
Trade credit is a short-term source of financing that allows businesses to obtain
supplies without immediate payment. It is a credit agreement between a supplier and a
buyer, where the supplier agrees to provide goods or services to the buyer on credit.
Trade credit terms usually require the buyer to make repayment in 30, 60, or 90 days,
although sometimes suppliers may offer shorter or longer terms. Trade credit is
considered a short-term source of finance because it is typically used to finance working
capital needs.
Trade credit can be an attractive financing option for businesses because it is
flexible and low-cost. The amount of credit reflects the value of business done with a
supplier, and trade creditors do not charge interest on the amount outstanding unless
payment is delayed well beyond the settlement date.
Terms for Trade Credit Sales may be made on terms such as cash, end of
month (E.O.M.), middle of month (M.O.M.), or receipt of goods (R.O.G.). Or such terms
as 2/10, net30 may be offered, which means the purchaser may deduct 2 percent from
the purchase price if payment is made within ten days of shipment; if not paid within ten
days, the net amount is due within 30 days. Such trade discounts to purchasers for
early payment are common and are designed to provide incentive for prompt payment
of bills. Occasionally, sellers offer only net terms such as net 30 or net 60.
Cost of Trade Credit When trade credit terms do not provide a discount for early
payment of obligations, there is no cost to the buyer for such financing. Even when
discounts are available, it may seem that no cost for trade credit exists, since failing to
take the early payment discount requires the purchaser to pay the net price. A cost is
involved, however, when a discount is not taken. For example, with terms of 2/10, net
30, the cost is the loss of the 2 percent discount that could have been taken if payment
were made within the ten-day period.
Commercial Finance Companies
A commercial finance company is an organization without a bank charter that
advances funds to businesses by discounting accounts receivable, making loans
secured by chattel mortgages on machinery or liens on inventory, or financing deferred-
payment sales of commercial and industrial equipment. Some also do lease financing to
assist businesses needing machinery, trucks, or other heavy equipment in their line of
business. These companies also are known as commercial credit companies,
commercial receivables companies, and discount companies.
Commercial finance companies are financial institutions that provide loans and
other financial services to businesses. These companies specialize in providing short-
term financing to businesses that need capital to cover their operating expenses,
purchase inventory, or expand their operations.
Commercial finance companies offer a variety of financing options, including
lines of credit, term loans, and equipment financing. They also offer factoring services,
which allow businesses to sell their accounts receivable to the finance company in
exchange for immediate cash.
There are several commercial finance companies available to businesses, such
as Radiowealth Finance Company Inc., RFC, and Aeon Credit Service (Philippines) Inc.
Commercial paper
Commercial paper is a type of unsecured, short-term debt instrument issued by
corporations and large banks. It is used to finance short-term liabilities such as payroll,
accounts payable, and inventories. Commercial paper is typically issued at a discount
from face value and reflects prevailing market interest rates. It is usually sold at a
maturity of up to 270 days.
Commercial paper is a popular source of short-term financing for businesses
because it is flexible and low-cost. However, it is important to note that commercial
paper is not backed by collateral, which makes it riskier than other types of short-term
financing.
In addition to commercial paper, there are several other sources of short-term
financing available to businesses, such as bank lines of credit, invoice financing, and
merchant cash advances. Short-term financing can provide your business with a quick
capital injection to cover unforeseen expenses or capitalize on a new business
opportunity. This can be an ideal financing solution for small businesses that have to
contend with fluctuating cash flows and that might not have a lot of collateral to offer up.
Additional Varieties of Short-Term Financing
Accounts receivable is the balance of money due to a company by its debtors. It
is a short-term source of financing that allows businesses to obtain supplies without
immediate payment. Trade credit is a credit agreement between a supplier and a buyer,
where the supplier agrees to provide goods or services to the buyer on credit. Trade
credit terms usually require the buyer to make repayment in 30, 60, or 90 days,
although sometimes suppliers may offer shorter or longer terms.
Accounts receivable are listed on the balance sheet as a current asset. Any
amount of money owed by customers for purchases made on credit is AR. The strength
of a company’s AR can be analyzed with the accounts receivable turnover ratio or days
sales outstanding. A turnover ratio analysis can be completed to have an expectation of
when the AR will actually be received.

In addition to trade credit, there are several other sources of short-term financing
available to businesses, such as bank lines of credit, invoice financing, and merchant
cash advances. Short-term financing can provide your business with a quick capital
injection to cover unforeseen expenses or capitalize on a new business opportunity.
This can be an ideal financing solution for small businesses that have to contend with
fluctuating cash flows and that might not have a lot of collateral to offer up.
Pledging
Pledging accounts receivable is a financing method that allows a company to use
its receivables as collateral for a loan. It means the company borrows money by
promising the lender the right to collect on outstanding invoices if it fails to repay
according to the agreed-upon terms. The lender may physically take the accounts
receivable but typically has recourse to the borrower. Pledging accounts receivable is
an example of giving up some of the rights to an asset in order to borrow money.
Accounts receivable are listed on the balance sheet as a current asset. Any
amount of money owed by customers for purchases made on credit is AR. The strength
of a company’s AR can be analyzed with the accounts receivable turnover ratio or days
sales outstanding. A turnover ratio analysis can be completed to have an expectation of
when the AR will actually be received.
Factoring
Factoring accounts receivable is a financial transaction in which a business sells
its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. This
is a source of debt financing available to businesses that sell on credit terms. Factoring
receivables is one of the most popular ways to finance companies struggling with limited
cash flow. The borrower assigns or sells its accounts receivable (or specific invoices) in
exchange for cash today.
Accounts receivable are listed on the balance sheet as a current asset. Any
amount of money owed by customers for purchases made on credit is AR. The strength
of a company’s AR can be analyzed with the accounts receivable turnover ratio or days
sales outstanding. A turnover ratio analysis can be completed to have an expectation of
when the AR will actually be received.
Acceptance
An acceptance is a type of financial instrument that arises from sales
transactions. It is a written order by the buyer of goods or services to pay the seller at a
future date. The seller can then use the acceptance as collateral to obtain short-term
financing from a bank or other financial institution.
 Banker’s acceptances are a type of acceptance that are guaranteed by a bank.
They are often used in international trade transactions to provide assurance to the seller
that they will be paid.
Inventory Financing and Other Secured Loans
Inventory Loans
Inventory financing is a type of short-term financing that allows businesses to
purchase inventory to sell at a later date. It is often used by small to mid-sized retailers
and wholesalers who lack the financial history and available assets to secure larger
financing options. Inventory loans are typically secured by the purchased inventory,
meaning that the lender can take possession of the inventory if the borrower defaults on
the loan. Inventory financing can be helpful for inventory-heavy businesses that need to
keep cash flow steady through busy and slow seasons, update product lines, increase
inventory supplies, and respond to high customer demand. Some of the best inventory
financing loans of 2023 include BlueVine, Fundbox, and Kabbage.
Loans secured by stocks and bonds
Loans secured by stocks and bonds are a type of collateralized financing option
that uses assets such as equity or cryptocurrencies to secure loans with modest interest
rates and limited risk. The original stock certificate of the stock being collateralized is
placed with the bank as collateral. Secured loans are usually cheaper than unsecured
loans because the borrower assumes the risk. Share secured loans use the money in a
savings account, CD, or money market account as collateral to lower the risk level for
the lender. SBLOCs use investments in a taxable brokerage account as collateral to
back a revolving line of credit. Loan stock refers to shares of common or preferred stock
that are used as collateral to secure a loan from another party. These types of loans can
be helpful for those who need quick cash for a down payment or to cover an
unexpected expense, but may not be sure whether it warrants raiding their emergency
savings. By using stocks and bonds as collateral, borrowers can access cash so they
can grab onto an investment opportunity or make ends meet when they’re stuck in a
jam.
Other Forms of Security for Loans
Life Insurance Loans
Life insurance loans are a type of collateralized financing option that uses the
cash value of a life insurance policy as collateral. It often has lower interest rates than a
personal loan and you can use the money for any purpose. You don’t need to repay this
loan before you die. To initiate a policy loan, you’ll need to contact your life insurance
company. Before taking out a policy loan, find out what will happen to the components
of your policy after the loan. If you need money to fund a major expense or necessity,
you may be able to turn to your insurance policy. If you have permanent life insurance,
which includes whole life, adjustable life, variable life, universal life, and indexed
universal life, you’ll likely have a cash value component you can access. Unlike term life
insurance, which has a set time limit on its coverage period and does not accumulate
cash value, permanent life insurance does have a cash component. At the beginning of
the policy, more of the premium goes toward funding the indemnity benefit. As the
policy matures, cash value increases. Borrowing from your life insurance policy is one
option to access money to pay for a major expense or necessity. If you have a policy
with a cash value, such as permanent life insurance (which includes whole life or
universal life), you can borrow from your life insurance. Term life insurance does not
have a cash value, so you cannot borrow from these policies. The funds you borrow are
tax-free, but there are typically interest payments. Paying back the loan is often
optional, however, if you do not repay, the death benefit will be lower.
Co-maker Loan
A co-maker is a person who, by virtue of contract, promises to pay the loan of
another in case of default. Co-makers are often used when applying for a collateral loan
and when the borrower is unable to meet certain credit criteria such as age or
insufficient proof of income. By having a co-maker, you can increase the amount of loan
and boost chances of approval, especially if the co-maker is in good credit standing and
has sufficient income. As a co-maker, he or she does not receive or benefit from the
proceeds of the loan. Nonetheless, one is responsible in ensuring that the full amount of
the loan including interests are paid. Co-maker loans are not a type of short-term
financing, but rather a way to secure a loan with the help of another person. If you need
short-term financing, you may want to consider other options such as inventory loans,
loans secured by stocks and bonds, or life insurance loans.
The Cost of Short-Term Financing
For most asset-based and unsecured loans, a simple method can be used to
combine the interest expenses and fees to determine the true interest cost of a short-
term loan. Fortunately, we discussed this earlier in this chapter when we examined
commercial paper. Here, we break it into steps and present an example. First,
determine the amount to be borrowed. Discounted loans or bank loans with
compensating balances will need to use equations 16-2 and 16-3 to determine the
amount. Second, determine the interest expense on the borrowed funds. This is the
interest rate multiplied by the amount borrowed. Third, determine the fees and other
expenses associated with using the financing source. We know, for example, that
factors charge a service fee, inventory loans may carry warehouse charges, and
pledged loans usually carry extra fees because of the extra analysis done by the lender.
Fourth, estimate the net proceeds. This may be the same as the amount borrowed, but
in the case of discounted loans (such as commercial paper), the net proceeds will be
less than the amount borrowed. Fifth, to estimate the financing cost, divide the sum of
the interest expenses and fees.
1. Determine the amount received
 2. Determine the interest expense
3. Determine the fees and other expenses
4. Estimate the net proceeds

REFERENCES:

1. (n.d.). A Comparison between 3 Survive A Market Shift. Forbes.

Strategies of Working Capital Financing. https://www.forbes.com/sites/forbesb
Finance Management. usinesscouncil/2022/12/21/growth-vs-
https://efinancemanagement.com/wor profitability-how-businesses-can-
king-capital-financing/3-strategies-of- survive-a-market-shift/?
working-capital-financing sh=2db9a4abf8ec
2. (n.d.). Working Capital Financing. 8. Maverick, J. (n.d.). Is Profitability or
Finance Management. Growth More Important for a Business?
https://efinancemanagement.com/wor Investopedia.
king-capital-financing https://www.investopedia.com/ask/ans
3. (n.d.). Working Capital Management. wers/020415/what-more-important-
Kaplan Financial Knowledge Bank. business-profitability-or-growth.asp
https://kfknowledgebank.kaplan.co.uk/ 9. (n.d.). Is the Banking Sector Subject to
acca/chapter-7-working-capital- Any Seasonal Trends? Investopedia.
management https://www.investopedia.com/ask/ans
4. (n.d.). Conservative Approach to wers/052915/banking-sector-subject-
Working Capital Financing. Finance any-seasonal-trends.asp
Management. 10. Tamplin, T. (n.d.). Time Series Analysis
https://efinancemanagement.com/wor and Seasonal Variations. Finance
king-capital-financing/conservative- Strategists.
approach-to-working-capital-financing https://www.financestrategists.com/ac
5. Nicholas, S. (n.d.). Current Assets vs. counting/management-accounting/
Fixed Assets: What's the Difference? time-series-analysis-and-seasonal-
Investopedia. variations/
https://www.investopedia.com/ask/ans 11. Turner, J. (2023). What Will Finance
wers/032415/what-difference- Focus on in 2023? Gartner.
between-current-assets-and-fixed- https://www.gartner.com/en/articles/w
assets.asp hat-will-finance-focus-on-in-2023
6. Beck, T., Asl1 Demirguc-Kunt, A., 12. Liberto, D. (n.d.). Cyclical Risk: What It
Laeven, L., & Levine, R. (2005). Finance, is, How It Works, Types. Investopedia.
Firm Size, and Growth [Research https://www.investopedia.com/terms/c
Working Paper]. /cyclical-risk.asp
https://documents1.worldbank.org/cur 13. Cerra, V. (2020). Hysteresis and
ated/en/151811468780334326/pdf/ Business Cycles [IMF Working Papers].
wps3485.pdf file:///C:/Users/DELL/Downloads/wpiea
7. Harrington, C. (n.d.). Growth Vs. 2020073-print-pdf%20(4).pdf
Profitability: How Businesses Can
14. (n.d.). Short-Term Financing. The 23. Brown, M. (n.d.). When Wholesale
Investors Book. Funding Goes Bad. Investopedia.
https://theinvestorsbook.com/short- https://www.investopedia.com/articles
term-financing.html /economics/09/when-wholesale-
15. (n.d.). Short-Term Financing. Wallstreet funding-goes-bad.asp
Mojo. 24. (n.d.). Overview of Short-Term
https://www.wallstreetmojo.com/short Financing. Saylor.
-term-financing/ https://learn.saylor.org/mod/book/vie
16. Lesonsky, R. (n.d.). Everything You Need w.php?id=53693&chapterid=37748
to Know About Short-Term Lines of 25. Pareek, J. (n.d.). What is Commercial
Credit. Fundera. Paper? Meaning, Types, Advantages &
https://www.fundera.com/business- Examples. Wint.
loans/guides/short-term-line-of-credit https://www.wintwealth.com/blog/wha
17. Hayes, A. (n.d.). Line of Credit (LOC) t-is-commercial-paper/
Definition, Types, and Examples. 26. Cussen, M. (n.d.). An Introduction to
Fundera. Commercial Paper. Investopedia.
https://www.investopedia.com/terms/l https://www.investopedia.com/articles
/lineofcredit.asp /investing/070313/introduction-
18. McQuerrey, L. (n.d.). List of Different commercial-paper.asp
Sources for Short-Term Business 27. Hargrave, M. (n.d.). What is accounts
Financing. Fundera. receivable? How to manage in 2024.
https://smallbusiness.chron.com/list- Quickbook.
different-sources-shortterm-business- https://quickbooks.intuit.com/accounti
financing-59205.html ng/accounts-receivable-guide/
19. Hamby, B. (n.d.). Calculating Interest 28. Zaryzcki, N. (n.d.). Understanding
Rates. Wikihow. Accounts Receivable (Definition and
https://www.wikihow.com/Calculate- Examples). Bench.
Interest-Rate https://www.bench.co/blog/accounting
20. Myburgh, X. (n.d.). 6 Types Of Short- /accounts-receivable
Term Financing. Forbes. 29. Hayes, A. (n.d.). What Accounts
https://www.forbes.com/sites/forbesfi Receivable (AR) Are and How
nancecouncil/2022/12/14/6-types-of- Businesses Use Them, with Examples.
short-term-financing/? Investopedia.
sh=2019bf11a77a https://www.investopedia.com/terms/a
21. Pallardy, C. (n.d.). What Is an SBA /accountsreceivable.asp
Microloan, and How Does It Work? 30. Factoring (finance). (2013, July 1). In
Investopedia. Wikipedia.
https://www.investopedia.com/what- https://en.wikipedia.org/wiki/Factoring
is-an-sba-microloan-7552644 _%28finance%29
22. (n.d.). Need a Loan for Your New Small 31. (n.d.). 6 Reasons Why Mobile Payment
Business? FDIC GOV. Acceptance Matters in Accounts
https://www.fdic.gov/resources/consu Receivable. Versapay.
mers/consumer-news/2023-05.html https://www.versapay.com/resources/
 mobile-payment-acceptance-matters- 35. Treece, K. (n.d.). Best Inventory
accounts-receivable Financing Loans Of 2023. Forbes.
32. Chen, J. (n.d.). Banker's Acceptance https://www.forbes.com/advisor/busin
(BA): Definition, Meaning, and Types. ess-loans/best-inventory-financing-
Investopedia. loans/
https://www.investopedia.com/terms/ 36. Kagan, J. (n.d.). Loan on a Life Insurance
b/bankersacceptance.asp Policy. Investopedia.
33. Lam-Balfour, T. (n.d.). Using Stocks as https://www.investopedia.com/terms/
Collateral Loans: Securities-Based Lines p/policyloan.asp
of Credit. NerdWallet. 37. (n.d.). Understanding the Role of Co-
https://www.nerdwallet.com/article/in Maker When Applying for a Loan.
vesting/securities-based-line-of-credit Balikbayad.
34. (n.d.). What Is Loan Stock? How It https://www.balikbayad.ph/blog/under
Works and Potential Risks to Lenders. standing-the-role-of-co-maker-when-
Investopedia. applying-for-a-loan/
https://www.investopedia.com/terms/l 38. Melicher, R., & Norton, E. (2017).
/loan_stock.asp Introduction to Finance (pp. 491-515).
Wiley