Mid Term Financing - Definition & Meaning Explanation

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  • Meaning of Mid-Term Financing
  • Definition of Mid-Term Financing
  • Explanation of Mid-Term Financing

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Short Term Financing

mid term financing

Mid Term Financing:
We know that short term financing is the financing of one year duration or less than one year. On the other hand long term financing means the financing which is for more than ten years. The mid term financing lies on the middle time frame. 

So, the financing which is for five years is called mid term financing. Generally the duration of mid term financing is three to seven years. 

A business organization uses mid term financing in order to purchase such type of asset from which the business may get a cash flow to pay the mid term loan. For this it is also called as self liquidating.


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