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Answer Posted / shreya
Yes,Long term sources of finance are those that are needed
over a longer period of time - generally over a year. The
reasons for needing long term finance are generally different
to those relating to short term finance.
Long term finance may be needed to fund expansion projects -
maybe a firm is considering setting up new offices in a
European capital, maybe they want to buy new premises in
another part of the UK, maybe they have a new product that
they want to develop and maybe they want to buy another
company. The methods of financing these types of projects will
generally be quite complex and can involve billions of pounds.
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