A. Spontaneous Funding (Spontaneous Financing)

This type of financing has character if the activity of the company changed, then the source of funding is change automatically

Some forms of spontaneous sources of funds include: accounts payable accruals (e.g. payment of wages / salary or payment of taxes). Trade payables arose because the company buys supplies from a supplier on credit, the tax debt was due to taxes paid each specific date in one year.

B. Non Spontaneous Funding (Non Spontaneous Financing)

This type of financing has a character that to acquire, increase or reduce funding, the company needed time to negotiate or formal negotiations. Some funding sources do not form spontaneously, among others:

• Commercials Paper. Debt is short term (30-90 days duration), the company issued unsecured large and sold directly to investors. Usually, only large companies could issue paper commercial.
• Credit Loan. Derived from financial institutions and non-bank financial institutions. Borrowing from a bank there are 2 types: (a) Credit Transactions, which is intended to credit to a specific goal. (b) Credit Line (Line of Credit), with these loans, borrowers can borrow up to a certain maximum amount, which is the ceiling (upper limit of the loan).
• Mortgage receivables. Another alternative of selling receivables is to use receivables as collateral to obtain loans (pledging receivables). With this alternative, there claim of ownership in the hands of the company. If the loan is not repaid, the receivables are pledged as collateral can be used to pay off the loan (the guarantee can be made ​​on all accounts receivable).
• Pledge Merchandise (Inventory). Companies can pledge merchandise to obtain a loan. The procedure used will be equal to guarantee receivables.

C. Evaluation of Short-Term Funding

To determine the short-term funding source financial managers can evaluate by using the following matters:

• Overall funding strategy
• Cost
• Availability of
• Flexibility