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Why do companies need long-term financing?

goji.go

wrote...

Posts: 5977

Rep:

11 years ago

Why do companies need long-term financing?

Why do companies need long-term financing?

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3 Replies

Diesel

Related Topics

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Testman

wrote...

#1

11 years ago

long term financing is important to increase the leverage and pay out ratio as well to decrease the bankruptcy costs.

bbb

wrote...

#2

11 years ago

In order to grow, new or small companies need expansion projects such as establishing new offices or manufacturing facilities, developing a new product or service, or buying another company. These projects generally cost millions of dollars and may take years to complete. Long-term financing is needed because it provides funds for a period longer than one year.

goji.go Author

wrote...

#3

11 years ago

Thanks

Smiling Face with Open Mouth

Diesel

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