Firms normally finance the working capital needs as per which combination of the following?

(i) Trade credit

(ii) Bank finance

(iii) Commercial papers

(iv) Factoring

Choose the correct answer from the code given below:

The correct option is ​Only (ii), (iii) and (iv)

Key Points

•  working capital referees to the liquidity level of the organization to manage the day-to-day affairs of business
• The form normally finances the working capital in different modes
• Bank finance

​The firm can obtain financial assistance from banks through various means such as overdraft facilities, short-term loans, and cash credit.

• commercial papers

Commercial papers are unsecured promissory notes issued by the firm in order to raise short-term funds from the market, they are typically issued by the large creditworthy firm.

• Factoring

Factoring referees to the sale firms' bills receivable or accounts receivable to the third party at discount, the factor who are collecting payments from the customers.

Hence the correct answer is  ​Only (ii), (iii) and (iv)