Bank choice and financing costs

Bank choice and financing costs

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 bank choice and financing costs.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Choosing a bank
• Comparison of cost of trade credit, commercial paper, and short-term bank loan

Detailed Microsyllabus

1. Bank selection

   1. Services, access and financing conditions.
   2. Reliability and relationship requirements.
   3. Match the bank to business needs.

2. Cost comparisons

   1. Trade-credit opportunity cost.
   2. Commercial-paper costs.
   3. Bank-loan costs including supplied fees and balance conditions.

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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.