Circumstances under which a company should use short-term debt finance.
1. Under situations when the company has identified a venture which calls for finance on short-term notice and will pay back early enough to facilitate repayment of the loan.
2. Under situations where the company’s venture promises higher returns that the cost of debt finances.
3. Under high debtor’s turnover where the company wants to boost sales through further investment in stock.
lydiajane74 answered the question on May 9, 2018 at 19:38
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