Accounting ExplanationFinance

Short-Term Finance, Medium-Term Finance, Long-Term Finance with Chart


Short-term investments

Short-term investments are investments that you expect to hold for less than a year. These might include things like savings accounts, short-term government bonds, or even certain stocks. The idea behind short-term investments is to put your money somewhere that it can grow a little, but also be safe and easy to access if you need it.

TypeTenureAmountPurposeExamples
Working Capital1-12 monthsUp to $1 millionManaging day-to-day operationsAccounts receivable financing, inventory financing, trade financing



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Medium Term Investment

Medium-term investments are investments that you expect to hold for one to three years. These might include things like bonds, certain stocks, or even real estate. The idea behind medium-term investments is to put your money somewhere that it can grow more than it would in a short-term investment, but still be safe and accessible.

TypeTenureAmountPurposeExamples
Expansion Capital1-3 years$1 million – $5 millionFinancing growth and expansionEquipment financing, lease financing, term loans

Long Term Investment

Long-term investments are investments that you expect to hold for more than three years. These might include things like stocks, real estate, or even a business. The idea behind long-term investments is to put your money somewhere where it can grow over time, but also have a bit more risk since you won’t be able to access the money as efficiently.

TypeTenureAmountPurposeExamples
Capital InvestmentOver 3 yearsOver $5 millionFinancing major projects and acquisitionsProject financing, mezzanine financing, equity financing

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