Top 3 Factors for Financing Current Assets | Working Capital

This article throws light upon the top three factors for financing current assets. The factors are: 1. Flexibility 2. Risk 3. Cost of Financing. Financing Current Asset: Factor # 1. Flexibility: It is comparatively easy to repay short-term loans than long-term ones when the need for funds decreases. Long-term funds, e.g., debenture or preference share capital cannot be redeemed before [...]