When a company needs to develop through financing. There are advantage and disadvantage through financing.Advantage – Before hand you can arrange period of time for repayment.   Interest payment on the loan can be deducted on the taxed payable.Disadvantage – During the negotiation period, (for the loan repayment) you a company asset is need for mortgage.There are lots of financing below are as follow: Short term commercial loan - means within a short period of time for business capital turnoverMedium term & long term commercial – Usually the company needs to develop a large-scale of project.
The amount involving should be huge amount and also repayment period should be longer.Overdraft – Needs the cash urgently, insufficient usually the account is funds, so the cheque will be with draw.Bill of discount – The advantage of bill of discount is the company can open an invoice to obtain the loans. So this would make the large-scale development of the company to be smoothly would not cause any insufficient funds.