Short and Long Term Sources of Finance for Zylla Limited

Task 4: Business
Scenario for Individual
Report

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................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Financial management is the method which focuses on the ratios, equity and debts. This
also refers to the technique of managing funds and resources in such a manner as to accomplish
the objective of the company in effectively manner(Karpenko and et., al., 2019). The report is
based upon Zylla Limited which operates Ferry which is used to cross the rivers. It covers short
and long term sources of finance which help in carry out the operational activities smoothly.
Further it involves different appraisal techniques which encourage employees to achieve the goal
in a well define manner.
Short term and long term source of finance to funds the Acquisition
The various source of funding aid firm to expand the business effectively and also assist
in creating feasible model for growth and expansion. After the formation of the organisation it
require funds which help in expansion and growth efficiently. The main purpose of the short
term loan is to smooth flow business and also to meet the financial requirements effectively.
Further this, enables the entity to maintain the stock of raw material and the finish goods. The
firm must use short term finance which becomes more essential which increase the volume of the
production for the shorter time span. There are some short term loans which is beneficial for the
company to expand the business.
Trade creditors: It is the kind of loan which is given to manufacture or the supplier of
the raw material to the company. Mainly these credits are given between 30 to 90 days. In the
context of Zylla this is important for the firm to take loan on the behalf of trade as this will help
in expansion of business effectively. This is essential for the business to increase the value of the
firm and the productivity.
Bank loan: This is the organisation which avail the loan to the company to carry forward
the daily activity. For the organisation like Zylla manager can drive these services to improve the
current position by using short term loan. When the bank provide the loan to borrower the
amount is credited on the basis of requirement. It provide different services such as loan credit,
cash credit and overdraft with the low interest rate.
Instalment credit: This is the loan which is provided on the fix amount of money and
the borrower agrees to make set of number of payments which should be paid as the individual
takes the loan. In the context of Zylla this is consider as the one of the easy way to take loan