Short and Long Term Source of Finance for Zylla Limited

Individual Report
(Task 4)

Table of Contents
INTRODUCTION...........................................................................................................................3
Short term and long term source of finance to funds the acquisition .........................................3
Evaluation of different appraisal techniques and recommended the operation of new ferry......4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Financial management is the process which help in managing and controlling the
monetary activities present in the organisation . The present report is based upon the Zylla
limited which operates number of ferries which help in providing river crossing services for the
people (Hishammuddina and et., al., 2019). The company carries out vehicles, goods and
services prospect for the expansion. Firm has decided to buy new ferry which cater the increase
the demand as well as revenue for the organization. Further this report covers short and long
term source of finance to carry out the operational activities smoothly. Apart from this it involves
different appraisal techniques which is used in the organisation to motivate and encourage the
employees in a well define manner.
Main body
Short term and long term source of finance to funds the acquisition
The source of finance help the organization to expand the business effectively and also
help in developing sustainable business model in the well define manner. After the formation a
enterprise require the fund to expand and grow and earn profit for the longer time period. The
main purpose of short term loan is to facilitates the smooth running of the business by meeting
day to day financial requirements. It also enables firm to hold the stock of the raw material and
the finished goods. Short term finance become more essential when it is necessary to increase
the volume of the production in the shorter time span. Here are some of the short term loans
which can be beneficial for Zylla to expand the business:
Trade creditors: This kind of credit are often give to manufacture and individual who
supply goods to organisation. Usually these kinds of business gain the credit of 30 to 90 days.
For the organisation like Zylla this is essential for the firm to take loans as this help in providing
support to expand the business in effectively manner. As this beneficial for the small business to
increase the value and productivity of the company. It help the organisation to fulfil their
working capital requirement in order to complete daily activities of operations.
Bank credit: Commercial banks grant short- term finance to business firms which is
known as bank credit. Zylla should use these kinds of loans for the shorter time period. When the
bank credit is granted the borrowers gets the right to draw the amount of the credit at one time or
in the instalment when ever needed. Bank credit may be granted by way of loans, cash credit,