PRESENTATION ON THE TOPIC OF

PRESENTED BY: JL12FS41: SAKSHI SINGHAL JL12FS42: SAUMYA BHATNAGAR JL12FS44: SAUMYA SAXENA

JL12FS45: SHARVIL VIKRAM SINGH

JL12FS46: SHAZEB ALI BEIG

ACCOUNTS PAYABLE

SHORT-TERM BANK LOANS

A loan scheduled to be repaid in less than a year. Banks do make longer-term loans, the bulk of their lending is on a short-term basis(about two-third of all bank loans mature in a year or less). Bank loans to businesses are frequently written as 90 day notes, so the loan must be repaid or renewed at the end of 90 days.

PROMISSORY NOTES
When a bank-loan is approved, the agreement is executed by signing a promissory note. The note specifies
1. 2. 3. 4. The amount borrowed. The interest rate. The repayment schedule which can call either a lump sum or a series of installments. Any collateral that might have to be put up as security for the loan.

INFORMAL LINE OF CREDIT

A line of credit is an informal agreement between a bank and a borrower indicating the maximum credit the bank will extend to the borrower.

REVOLVING CREDIT AGREEMENT

A revolving credit agreement is a formal line of credit often used by large firms.

COMMERCIAL PAPER

Commercial paper is a type of unsecured promissory note issued by large, strong firms and sold primarily to other business firms, to insurance companies, to pension funds to money market and to banks.

Maturity of commercial paper generally vary from 1 day to 9 months, with an average of 5 months.

CONCLUSION: USE OF SECURITY IN SHORTTERM FINANCING

Whether use of short-term loans can be secured or not?

Which of collateral securities can be employed?