Short-term financing and sources

Short-term financing and sources

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Corporate Finance (FIN 250)

Unit 2: Short-Term Financing

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of short-term financing and sources.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Nature of short-term financing
• Advantages and disadvantages
• Sources of short-term financing: accruals, accounts payable (trade credit), commercial paper, short-term bank loans – line of credit, revolving credit arrangement, transaction loans

Detailed Microsyllabus

1. Short-term finance

   1. Nature, benefits and limitations.
   2. Accruals and trade credit.
   3. Commercial paper.

2. Bank facilities

   1. Credit lines and revolving arrangements.
   2. Transaction loans.
   3. Compare terms, flexibility and repayment needs.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 80–82.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.