Which type of financing does it need?- Trade credit- Accounts receivable- Inventory- Bank loanWhat is an advantage of short-term financing?- Restrictive loan requirements- Increased liquidity- Multiyear repayment terms- Lower interest ratesA company plans to expand into new sales territories and decides to obtain a long-termloan.What is an advantage of long-term financing?- Lowers leverage by paying more interest- Increases stockholder ownership- The interest is tax deductible- Creditors prefer companies with lower equity levels