The funds invested by restaurants in current assets and some fixed assets are often obtained by short-term or medium-term financing. However, the more fixed assets restaurants obtain by short-term financing, the greater the risk. Therefore, restaurants rarely use short-term liabilities to finance the purchase of assets with an economic life of more than one year. Short-term financing generally refers to liabilities with a repayment period of less than one year. Some short-term financing, such as short-term bank loans, may also have a repayment period of more than one year. For fixed assets with an economic life of more than one year, the investment funds are mostly borne by medium-and long-term financing. The so-called medium-term financing is generally a debt of 1-5 years, and more than 5 years is regarded as a long-term debt. Commercial Credit Commercial credit refers to the loan relationship between enterprises formed by deferred payment or advance loan in commodity trading. Commercial credit comes from commodity exchange and is self-financing which is widely used and occupies a considerable proportion in short-term debt financing. It is embodied in the following forms. ● Accounts payable. Accounts payable is an account owed by an enterprise to the other party for purchasing goods without payment, and it is a form in which the seller allows the buyer to pay the loan within a certain period after purchasing. The seller promotes sales in this way, and the buyer uses the seller's funds to buy goods, which can meet the short-term capital needs. Accounts payable correspond to accounts receivable and have credit conditions such as payment period and discount. It is divided into: free credit (the buyer pays within the time specified by the seller); Credit for consideration (credit obtained by the buyer giving up the discount specified by the seller); Extended credit (credit obtained by the buyer's payment beyond the time specified by the seller). A. opportunity cost of accounts payable. If the buyer enterprise pays within the discount period specified by the seller after purchasing the goods, it can enjoy free credit, at which time the enterprise does not pay the price for enjoying the credit. Example: An enterprise buys goods of 111,111 yuan on the condition of 1/11 and n/31. If the enterprise pays within 11 days, it can enjoy a 11-day free credit period and get a discount of 111,111 yuan (111,111 yuan? 1% = 11,111 yuan), and the free credit amount is 99,111 yuan. If the buyer enterprise gives up the discount and pays after 11 days (not more than 31 days), the enterprise will bear the price (opportunity cost) paid for giving up the discount. The cost formula of giving up cash discount in financial management is: giving up cash discount cost = discount percentage/1-discount percentage? 361/credit period-discount period can be calculated, and the cost borne by the enterprise to give up the discount is 1%/(1-1%)? ３６０／（３０－１０）＝１８．１８％。 Under the condition of giving up discount, the longer the enterprise delays payment, the smaller its cost will be. If the enterprise extends the payment to 41 days, the cost is 1%/(1-1%)? ３６０／（４０－１０）＝１２．１２％。 B. discount strategy. Under the condition of attaching credit conditions, the buyer's enterprise has to make a decision between which credit to use because it has to bear different costs. Generally speaking: ① If you can borrow money at a rate lower than the implied interest cost (opportunity cost) of giving up the discount, you should pay the loan with the borrowed money during the cash discount period and enjoy the cash discount. (2) If the accounts payable are used for short-term investment during the discount period, and the investment yield is higher than the implied interest cost (opportunity cost) of giving up the discount, you should give up the discount and pursue higher returns. (3) If the enterprise wants to postpone payment due to lack of funds, it needs to choose between the reduced cost of giving up discount and the loss caused by deferred payment. The losses caused by deferred payment mainly refer to the deterioration of corporate reputation and the loss of credit of suppliers and other lenders, or the harsh credit conditions in the future. ● Notes payable. Notes payable are notes issued by enterprises to reflect the relationship between creditor's rights and debts when deferred payment is made. The capital cost of notes payable is lower than the cost of bank borrowing, but it must be returned at maturity. If it is postponed, it will be fined, which is risky. ● Accounts received in advance. Advance payment is a form of credit in which the seller's enterprise receives part or all of the payment in advance before delivering the goods. In addition, enterprises will also generate spontaneous financing payable expenses in non-production commodity transactions, such as wages payable, taxes payable and other payables. Short-term loans Short-term loans for catering and hotel industries mainly come from commercial banks and other similar financial institutions. Some of these loans are guaranteed, while others are not. Many reputable enterprises often raise funds for their own inventories and accounts receivable through commercial credit. Such enterprises only apply for short-term loans from banks when their cash income reaches a low point. The channels for restaurants to obtain regular loans are mainly banks and other financial institutions. The purpose of raising regular loans for food and beverage outlets is mainly to increase the operating capital of food and beverage outlets and purchase fixed assets such as furniture and equipment. The principal and interest of term loans are usually repaid by restaurants in installments. The term of such loans is generally shorter than the economic life of the purchased assets. Commercial banks are an important channel for enterprises to obtain regular loans, and they usually lend to enterprises for 1-5 years. Enterprises can also apply for regular loans from financial institutions such as insurance companies and credit cooperatives. In general, the borrower repays the principal and interest of the loan to the creditor or creditor institution by stages during the loan period. The interest rate of fixed-term loans is usually more than one percentage point higher than that of short-term loans. The interest rate of term loans varies according to the different situations of borrowers. Generally speaking, compared with enterprises with good financial conditions (such as large-scale joint ventures managed by groups), the interest paid by small-scale exclusive enterprises is often several percentage points higher. Installment payment Some manufacturers who produce or sell furniture and catering facilities provide financial assistance to restaurants by installment payment. There are also some manufacturers who sell them to a financial company first, and then the financial company provides installment payment services to restaurants that buy these products. There are also many manufacturers who act as intermediaries between buyers and financial companies to help them reach a mutually acceptable installment agreement. The economic life of assets purchased by restaurants by installment is generally 5-11 years. Because the value of second-hand furniture and equipment is very low, it is difficult to serve as collateral, so when selling goods by installment, the party providing funds takes great risks. Under normal circumstances, the repayment period is shorter than the life, and the amount of the first payment is often 21% ~ 51% of the total payment, and the interest is much higher than that of the fixed loan. The interest rate of installment payment is generally five to six percentage points higher than the preferential interest rate. The funds brought to restaurants by the above-mentioned installment financing method are generally secured by chattel mortgage, that is, the lending institution has a lien on the chattel, and once the restaurant fails to repay all the loans and interest as promised, the lending institution has the right to sell these properties.