An Assessment of Hidden Charges on Bank Credit as Source of Short-Term Finance for Firm’s Sustainability

Abstract

Bank credit has become an important source of short term funding for many organizations in recent time. The need to bridge the financing gap between sales and the actual receipt of payment as well as maintaining the desired level of production has made bank credit imperative for sustainability. This research is to assess the various methods often adopted by banks in the analysis and pricing of the facility in order to achieve optimum utilization of bank credit by organizations. The quantitative method of analysis will be adopted to determine the most effective pricing that minimizes cost of funds to the organization. Secondary sources of data such as text books, journals, magazine, and newspapers will suffice for the research. Conclusion and recommendation will be made based on our findings.

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