Discuss any two Sources of Short-term Finance, other than Bank Credit and Trade Credit, that are used by firms to meet their Working Capital needs. 

Short-term finance is essential for businesses to manage their day-to-day operations and meet immediate financial obligations. While bank credit and trade credit are common sources of short-term finance, there are other alternatives that firms utilize to fulfill their working capital needs. In this discussion, we will explore two sources of short-term finance: Commercial Paper and Factoring.

1. Commercial Paper:

Commercial Paper (CP) is a widely used instrument for raising short-term funds in the financial markets. It is a type of unsecured promissory note issued by large, creditworthy corporations, financial institutions, and other eligible entities. CP serves as a cost-effective alternative to traditional bank loans for companies seeking short-term liquidity.

Key features of Commercial Paper:

• Maturity: Commercial Paper typically has a maturity ranging from a few days to a maximum of 270 days, making it a suitable source for short-term financing needs.
• Issuers: CP is usually issued by well-established, financially sound corporations with strong credit ratings. These companies can raise funds directly from investors without intermediaries.
• Investors: Commercial Paper is purchased by institutional investors, ______ ______ ________ __________ _____ __________ ____ ___.
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