Finance short term

Car manufacturers and intermediaries offer various forms of rail-car leases, ranging from short-term, full-maintenance rentals to long-term leases requiring outside financing (3). Many chemical shippers have substantial investments or lease commitments in tank cars and similar rail equipment, including cars constmcted of or lined with special materials for particular products. Other cars may be thermally insulated to prevent excessive heat buildup in transit or for protection against fire. 

Debt Financing In practice, debt financing covers a variety of fixed-income securities, both long-term and short-term. The most common forms of long-term debt are bonds, mortgages, and debentures. 

Accounts payable, also called trade credit, are the major source of short-term financing. Accounts payable normally amount to about 40 percent of the current liabihties of a manufacturing company. Such short-term financing is relatively expensive when available discounts are lost. 

The second most important source of short-term financing is notes payable from commercial banks. Banks normally reqmre a Borrower to maintain a compensating balance. For example, if a company requires a loan of 100,000, it must borrow more than this, say, 120,000 (on which it pays interest), in order to maintain a minimum checldng-accouut balance of 20,000. Commercial banks also provide a wide variety of other services that can be of great help to companies in temporary financial difficulties. 

The third most important source of short-term financing is the commercial paper, or promissory notes, of large companies. This is the... 

Sometimes, fixed assets are purchased via short-term loans, which can lead to hquidity problems. For the most part, fixed assets should be financed from long-term or permanent capital such as stocks or bonds. The proven abihty of management to handle working capital efficiently will put a company in a better position to obtain such longterm capital when required, because the confidence of bankers and stockholders will have been obtained. 

Both short-term and mid-term forecasts show a drop in the relative weight of the excluded products that would have occurred even if selective financing had not been introduced. 

Juez and Tamayo51 also apply time-series analysis to the evaluation of the consequences of introducing selective financing in 1993. Using the aggregate monthly data on pharmaceutical expenditure of the National Health System between 1991 and 1995, in constant deseasonalized pesetas, the authors compare the observed evolution with the theoretical evolution according to a linear fit. They conclude that the measure had a notable effect in the short term, but was absorbed in the long term. 

The owners funds, or equity, include the issued capital (i.e. the face value of the company s shares), capital reserves (funds received in ways distinct from operating profits, such as premiums on the sale of shares) and revenue reserves, which are the accumulated annual profits earned. The long-term loans include not only the sums borrowed from hanks and finance houses as well as bonds issued by the company, but also the provisions for future potential (but as yet unknown) costs for example the sums a company involved in asbestos liability litigation would prudently set aside against possible penalties and costs. Current liabilities include all bills received but not yet paid (for goods and services), and any short-term loans, due within a year, such as bank overdrafts. 

The cash flow from financing activities section summarizes changes in the company s long-term and short-term debt, proceeds from issues of common stock, repurchase of stocks, and dividends paid to stockholders. 

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. 

The first concerns the desire to establish a link between environmental performance and financial attributes such as share value. In this respect, the WBCSD supported a study on financing change, which investigated whether financial markets must always encourage a short-term, proht-hrst-and-last mentality, or whether they can reward companies that pay particular attention to their environmental responsibilities. 

A further key factor which has shaped the development of contaminated land policy has been the very active property market. This is particularly noticeable in the housing sector, where the UK has both a high proportion of owner-occupation and a rapid turnover of ownership in comparison with other countries. The ownership patterns of commercial land are also relevant. Much commercial land is held for investment purposes. But conversely in the case of smaller businesses, much of the financing of business operations is provided by short-term debt secured against the value of the property assets owned and occupied by the businesses. All of these factors have made questions of potential regulatory liabilities for land contamination politically and economically sensitive. 

---