Short-Term and Alternative Financing

Compare the costs and features of bank overdrafts and term loans using numerical examples.

Calculate the effective annual cost of forgoing early payment discounts in trade credit.

Describe the mechanics of leasing and hire purchase, identifying the relevant after-tax cash flows.

Perform a discounted cash flow analysis to decide between leasing and buying an asset.

Calculate the effective cost of factoring and invoice discounting as sources of short-term finance.

Illustrate the mechanics of securitisation using a numerical example of cash flow transformation.

Compare crowdfunding and peer-to-peer lending with traditional financing using cost and return analysis.