Short, medium & long-term finance

IB Business Management: Short, medium & long-term finance

Businesses match the type of finance with the purpose of use. For example, short-term finance such as a bank overdraft is suitable for funding day to day operations. By contrast, long-term finance such as a mortgage can be used to finance the purchase of premises.There is no universally accepted definition of short, medium and long-term finance, but the approximate time frames are outlined in the section below.


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