The financing cost – Criteria used in the financing decision making of a company

Author:Assistant PhD. Sebastian ENE

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Keywords:financing management, capital, financing cost, post-settled interests

Abstract:
An important stage in the financing management of a company using external sources is to determine the financing cost of the respective operation.\r\n\r\nThe right to use the capital from other sources obtained for a given price which is determined in accordance with the forces on the market. The amount paid for the borrowed capital may vary very much, reaching high levels, especially for the commercial credits required after maturity.\r\n\r\nThe analysis of the financing cost is made by the financial management, both on short term (up to a year), but especially for the medium and long term (more than a year).\r\n

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