Professional Documents
Culture Documents
Short-term financing means taking out a loan to make a purchase, usually with a loan
term of less than one year.
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Trade credit
This trade credit, as it is commonly called, is the largest single category of short-term
credit. Credit terms are usually expressed with a discount for prompt payment
Commercial paper
Commercial paper is issued for periods varying from two to six months. The rates on
prime commercial paper vary, but they are generally slightly below the rates paid on
prime business loans.
A short term bank credit is a type of loan that is obtained to support a temporary personal
or business capital need.
Secured loans:
Most short-term business loans are unsecured, which means that an established
company’s credit rating qualifies it for a loan.
· Unsecured loans:
An unsecured loan is a loan that is not backed by collateral or any physical assets,
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Spontaneous financing
Spontaneous financing refers to the automatic source of short term funds arisingin the
normal course of short term course of business
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Long-term finance can be defined as any financial instrument with maturity exceeding
one year (such as bank loans, bonds, leasing and other forms of debt finance), and public
and private equity instruments.
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Common Stocks
Stock, also known as ordinary shares, represent the ownership capital in a company. The
holders of these shares are the legal owners of the company.
This way of issuance helps the company to increase business capital, strengthen the
relationship of interests
Preference Shares
These shares carry preferential rights over equity shares both regarding the payment of
dividend and the return of capital. These shares carry a fixed rate of dividend and such
dividend must be paid in full before the payment of any dividend on equity shares.
A new company can raise finance only from external sources such as shares, debentures,
loans etc.
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Bonds
Bonds are securities that confirm the owner's lawful rights and interests to a portion of
the debt capital of the issuing organization.
Lease Financing
Lease is a contract between the owner of an asset and the user of such asset. Owner of the
asset is called ‘Lessor’ and the user is called ‘Lessee’.
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Vinamilk, is the largest dairy company in Vietnam, and one of the leading dairy
producers in Southeast Asia. The company was founded in 1976, and it has since grown
to become a major player in the global dairy industry.
Vinamilk's products include a wide range of dairy products, such as milk, yogurt, cheese,
and ice cream, as well as nutritional products and beverages.
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1. Dairy production: Vinamilk is known for its dairy products such as milk, yogurt,
and cheese.
2. Beverage production: In addition to dairy products, Vinamilk also produces a
variety of beverages including soy milk, fruit juice, and bottled water.
3. Nutrition products: Vinamilk produces nutritional products such as infant formula
and adult nutritional drinks.
4. Export: Vinamilk exports its products to over 50 countries around the world. Its
key export markets include the Middle East, Asia, and Africa.
5. Research and development: Vinamilk invests heavily in research and development
to improve the quality and nutritional value of its products.
6. Sustainability: Vinamilk is committed to sustainable and responsible business
practices, including environmental protection, social responsibility, and ethical
business conduct.
Overall, Vinamilk's core business activities are focused on producing and selling high-
quality dairy and food products, while also prioritizing research, development, and
sustainability.
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