Translated from Indonesian to English - www.onlinedoctranslator.

com

SHORT TERM FUNDING

 SHORT TERM FUNDING

- Permanent Funding
-Medium term loans, long term loans,
preferred shares, common shares
Spontaneous Funding
-

-Accounts payable that arise spontaneously in daily

operations (trade credits, salaries payable, accrued
interest and taxes)

- Short Term (Temporary) Funding

-unsecured bank loans, commercial paper,
loans secured by accounts receivable or
inventory
 Short Term Credit Costs

Flower=principalxinterest ratex
time

Co: borrow$10,000;8.5%during9 months

Interest = $10,000 x .085 x 3/4 years

=$637.50
 Short Term Credit Costs
We can use the equation:
Interest = principal x interest rate x time
To calculate the interest rate (rate) , And
obtain the Annual Percentage Rate (APR) value
 Short Term Credit Costs
We can use the equation:
Interest = principal x interest rate x time
To calculate the interest rate (rate) , And
obtain the Annual Percentage Rate (APR) value

APR =flower x1
principal time
Short Term Credit Costs

flower 1
APR = x
principal time
 Short Term Credit Costs

flower 1
APR = x
principal time

Example: if you pay$637.50

as interest on the principal amount
$10,000during9month:
 Short Term Credit Costs

flower 1
APR = principal
x time
Example: if you pay$637.50
as interest on the principal amount
$10,000during9month:

APR =637.50/10,000x1/.75=
. 085
= 8.5%
 Short Term Credit Costs

Annual Percentage Yield (APY)similar

with APR, except that the
calculation uses compound
interest:
 Short Term Credit Costs

Annual Percentage Yield (APY)similar to APR,

except that the calculation uses compound
interest:

( )
i m

APY = 1+ - 1
m
 Short Term Credit Costs

Annual Percentage Yield (APY)similar

with APR, except that the calculation
uses compound interest (compound
interests):

( ) i m

APY = 1+ - 1
m
i = nominal interest rate m =
number of periods in one year
 Short Term Credit Costs
How many(APY)from loans with
9% interest rate with
monthly payments?

APY = ( 1 + ( .09 / 12 )12-1)

. 0938

=9.38%
 Sources of Term Credit
Short
No guarantee
-
 Sources of Term Credit
Short
No guarantee
-

-Salary and tax accruals

 Sources of Term Credit
Short
No guarantee
-

-Salary and tax accruals

-Trade credit
 Sources of Term Credit
Short
No guarantee
-

-Salary and tax accruals

-Trade credit
-Bank credit
 Sources of Term Credit
Short
No guarantee
-

-Salary and tax accruals

-Trade credit
-Bank credit
-commercial papers
 Sources of Term Credit
Short
No guarantee
-

-Salary and tax accruals

-Trade credit
-Bank credit
-commercial papers
With Guarantee
-
 Sources of Term Credit
Short
No guarantee
-

-Salary and tax accruals

-Trade credit
-Bank credit
-commercial papers
With Guarantee
-

- Loans with Receivable

Collateral
 Sources of Term Credit
Short
-No guarantee
-Salary and tax accruals
-Trade credit
-Bank credit
-commercial papers
- With Guarantee
- Loans with Receivable
Collateral
- Loans with inventory
collateral