Question

A company is facing liquidity crunch, hence offers relatively higher interest for upfront borrowing in comparison to commercial banks. Which source of short-term finance would be suitable in the above case?

विकल्प

• Factoring

• Customer advances

• Public Deposits

• Instalment credit

Answer 1

Public Deposits

Explanation:

Public deposits are a form of short-term finance in which a company invites the general public to deposit money with them for a specified period, usually at a higher interest rate than banks offer. This can attract investors who are looking for better returns on their savings, especially if the interest rates are more attractive compared to traditional banking products.