what are the advantages and disadvantages of long-term funds.
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what are the advantages and disadvantages of long-term funds.
what are the advantages and disadvantages of long-term funds.
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Answer:
disadvantages
A major drawback of long-term debt is that it restricts your monthly cash flow in the near term. The higher your debt balances, the more you commit to paying on them each month. ... It also limits your ability to build up a safety net of cash savings to cover unexpected costs of doing business.
advantages
Long-term financing provides greater flexibility and resources to fund various capital needs, and reduces dependence on any one capital source. It also enables companies to spread out their debt maturities.
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