Finance medium term

Multiseller securitization conduits typically issue short term commercial paper or medium term notes in the capital markets to fund their purchases of receivables from originators. See, e.g.. Corporate Asset Funding Co., Inc., Fitch Investors Service, Structured Finance, New Issue, June 15,1992, at 81 (discussing Corporate Asset Funding Co., Inc. s 7 billion commercial paper and medium term note program) Mark H. Adelson, Asset-Backed Commercial Paper Understanding the Risks, Moody s Investors Service, Structured Finance, Special Report, Apr. 1993. 

In general terms, the initial fixed capital investment and the minimum net working capital are covered by a mix of equity and long-term loans and additional net working capital from short- and medium-term loans or from positive net cash flow (equity). Within this structure, various combinations and permutations need to be considered related to cost of finance, financial flexibility, debt service, and taxation. Consideration should also be given to leasing, supplier credits, and other sources of finance. In all cases, a balance has to be struck between equity and debt finance. 

Ascertain the best available financing stmcture a nux of short, medium and long term finance through debt, equity or hybrid instmments to stmcture the funding modei for the firm... 

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