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A medium term source of finance means when firms need funds not more than for 2 years. So firms get these finance from Banks or other kind of sources to run the business. Because short term is for 1 year and long term is for more than 1 or 2 years.
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There is short term source of finance which is the recent upsurge of payday advance types of loans, which are very short terms sources of finance. There is long term source of finance which is like a mortgage or a lengthy business note, between 10 and 30 years. A medium term is anywhere between the short term and the long term sources of finance. Such could describe a note that is set to be fulfilled in a year or five years.
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