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Hedging Approach For Determining Finance Mix In Working Capital Management

Hedging Approach For Determining Finance Mix In Working Capital Management:

Hedging approach is also known as matching approach. Under this approach, the business concern can adopt a financial plan which matches the expected life of assets with the expected life of the sources of funds raised to finance assets.

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When the business follows matching approach, long-term finance shall be used to fixed assets and permanent current assets and short-term financing to finance temporary or variable assets.

Hedging Approach For Determining Finance Mix In Working Capital Management Hedging Approach For Determining Finance Mix In Working Capital Management Reviewed by Blog Editor on Friday, July 21, 2017 Rating: 5

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