Pendanaan Jangka Pendek - Rita Kusumawati, SE , M Si

Summary

In this video, financial management experts discuss short-term funding strategies for businesses. They explain the importance of short-term financing for maintaining liquidity and supporting operational activities like purchasing raw materials and paying wages. The discussion covers the advantages and disadvantages of short-term funding, such as faster access to capital and lower costs, but also higher risks due to fluctuating interest rates. The video also explores specific sources of short-term funding, including spontaneous financing methods like trade credit, and non-spontaneous options like bank loans and commercial papers.

Takeaways

• 😀 Pendanaan jangka pendek is crucial for maintaining a company's liquidity and ensuring operational continuity, such as covering working capital needs like purchasing raw materials and paying wages.
• 😀 Short-term financing can be categorized into two main types: spontaneous funding and non-spontaneous funding. Spontaneous funding changes automatically with business activity, while non-spontaneous funding requires an agreement to adjust the loan amount.
• 😀 Spontaneous funding examples include trade credit (accounts payable) and accrual liabilities (e.g., wages and taxes), where amounts vary depending on production levels and business activity.
• 😀 Non-spontaneous funding includes commercial papers, bank loans, and repurchase agreements, which require negotiation or new agreements for adjustment.
• 😀 Short-term funding has several advantages, including faster access to funds, lower costs compared to long-term funding, and greater flexibility in managing working capital.
• 😀 The main disadvantage of short-term funding is higher risk, including fluctuating interest rates and potential liquidity issues when relying heavily on short-term debt.
• 😀 For trade credit, the three common types are open account (pay after delivery), notes payable (formal written agreement), and trade acceptance (draft guaranteed by a bank).
• 😀 To calculate the effective interest rate on trade credit, one can use a formula involving the discount percentage, credit period, and number of days. A higher discount percentage reduces the effective interest rate significantly.
• 😀 For non-spontaneous funding, commercial papers are short-term debt securities issued by companies, typically with a maturity of 30 to 90 days. These are used by companies to meet immediate funding needs.
• 😀 Bank loans, a common form of non-spontaneous funding, come with various terms, such as promissory notes (formal loan agreements), lines of credit (pre-approved loan amounts), and revolving credit (ongoing loan agreements).
• 😀 Three methods for calculating the cost of a bank loan include simple interest, discounted interest, and add-on interest. Each method provides different ways of calculating how much the borrower will pay based on the loan's interest rate and terms.

Q & A

What is the primary role of financial managers as discussed in the script?

The primary role of financial managers is to make decisions regarding investment and funding. Specifically, they are responsible for determining how to acquire the necessary funds when a company needs capital.

What are the two main types of funding sources discussed in the video?

The two main types of funding sources discussed are short-term funding and long-term funding. This session specifically focuses on short-term funding sources.

Why is short-term funding important for a company?

Short-term funding is crucial for maintaining a company’s liquidity, ensuring smooth operations, and meeting working capital needs, such as purchasing raw materials or paying wages.

What are some advantages of short-term funding?

The advantages of short-term funding include faster access to capital, greater flexibility for financing current assets, and lower borrowing costs compared to long-term funding.

What are some risks or disadvantages associated with short-term funding?

The risks of short-term funding include higher financial risk due to fluctuating interest rates, as well as potential liquidity issues if the company relies too heavily on short-term borrowing.

What is the difference between spontaneous and non-spontaneous funding?

Spontaneous funding refers to funding that automatically changes in amount based on a company’s activity, such as trade credit. Non-spontaneous funding, on the other hand, requires negotiation or agreements to adjust the amount, such as bank loans.

Can you provide examples of spontaneous funding sources mentioned in the video?

Examples of spontaneous funding include trade credit and accrued liabilities, such as unpaid wages or taxes.

What are the three types of trade credit discussed in the transcript?

The three types of trade credit mentioned are 'Open Account,' where goods are shipped with payment terms; 'Notes Payable,' where a formal debt agreement is signed; and 'Drafts,' where the seller draws a payment draft for the buyer.

How is the effective interest rate on trade credit calculated, and what is an example calculation?

The effective interest rate on trade credit is calculated using a formula involving the discount percentage, number of days of credit, and the total amount of the trade. For example, if a company purchases materials on credit with a 2% discount for payment within 10 days, the effective interest rate is calculated as 36.7% annually.

What are some non-spontaneous sources of short-term funding?

Non-spontaneous sources of short-term funding include commercial paper, bank loans, repurchase agreements, and others. These sources typically require negotiation or formal agreements for the company to access the funds.

How does the commercial paper market function, and who can issue it?

The commercial paper market involves short-term debt securities issued by corporations. These papers are typically offered for periods between 30 to 90 days and can be sold directly to investors without intermediaries. Not all companies are eligible to issue commercial paper; only those with strong credit ratings generally participate.

What are the characteristics of a bank loan as a source of short-term funding?

Bank loans are characterized by their specific maturity periods, formal agreements such as promissory notes, and the possibility of revolving credit lines. They may also involve interest calculations based on different methods, including simple interest, discounted interest, and add-on interest.

What are the three methods for calculating the cost of bank loans?

The three methods for calculating the cost of bank loans are: 1) Simple interest (regular interest calculation), 2) Discounted interest (interest is deducted upfront), and 3) Add-on interest (interest is calculated based on the original loan amount and added to the total loan balance).

Can you explain the add-on interest method with an example?

In the add-on interest method, the total interest is calculated based on the original loan amount and added to the principal. For instance, if a company borrows 100 million with a 12% interest rate for a year, the total cost would be 12 million interest, resulting in 112 million to be repaid.

What are the key takeaways from the video regarding short-term funding?

Key takeaways include understanding the different sources of short-term funding, their advantages and risks, and how to calculate the cost of these funding options. Companies need to balance their need for liquidity with the associated risks and costs of short-term financing.