Short and Long Term Sources of Finance and Investment Appraisal Techniques

Business Scenario for
Individual Report
1

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Short term and long term sources of finance...........................................................................................3
Investment appraisal techniques..............................................................................................................4
CONCLUSION...........................................................................................................................................6
REFRENCES..............................................................................................................................................7
2

INTRODUCTION
For every firm business expansion is necessary because through it they get numbers of
benefits such as increase customer’s base, profit, market shares and so on. Business expansion is
determined as technique through which growth of business can be possible for enhancing the
numbers of store and customers at the potential marketplace (Brennan, Canning and McDowell,
2020). The respective report is based on the case of Zylla Limited which is conducting its
operations by offer ferries services across river for the people, vehicles and so on. The primary
objective of developing this report is to identify short as well as long term finance along with
this, it also include information related to investment appraisal techniques.
MAIN BODY
Short term and long term sources of finance
For an organization wellspring of fund are debt, equity, term loan, retained earnings,
working capital, letter of credit, euro issues and a lot more. These kinds of funds will use at
various circumstances which are experienced by an organization while operating its business.
The funding source is isolated into two i.e. short term as well as long term. Clarification of short
and long term money sources in regard of Zylla Limited are given below:-
Short term finance
It refers to fund required for a brief timeframe, for the most part for not exactly a year. At
the firm, it is called working capital financing just as it is regularly required because of uneven
income or cash flow into unit, seasonal pattern and some more (Divekar and Raman, 2020). In
regard of Zylla Limited, some significant short term fund is given below:
 Trade Credit - It is determined as a fundamental procedure for funds related
development. As indicated by this, suppliers let the organization purchase items or
resources now and pay them later. In regard of this respective organization can take
delivery of more ships or other related materials or equipments without paying money on
the spot.
3