Trade credit is a form of short-term financing. Businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.

The most widely used source of short-term funding is: TRADE CREDIT.

Since commercial finance companies offer loans to higher risk customers than commercial banks, the interest rates they charge are usually higher than rates charged by banks.

Stocks offering investors a high dividend yield are called INCOME STOCKS.

Issuing bonds increases a firm's debt and may adversely affect the financial community's perception of the firm.