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fatimah needs additional short-term financing to fund the operations of…

Question

fatimah needs additional short-term financing to fund the operations of her real estate business, so she takes out a line of credit at her local bank.

what type of financing resource is fatimah accessing?

○ commercial lending
○ trade cr
○ factor
○ peer lending

Explanation:

Brief Explanations

To determine the financing resource Fatimah is accessing, we analyze each option:

  • Commercial lending: Banks provide commercial loans/lines of credit to businesses for operational needs, which matches Fatimah taking a line of credit from her local bank for her real estate business.
  • Trade credit: Involves credit from suppliers (e.g., delaying payment for goods), not a bank line of credit.
  • Factoring: Involves selling accounts receivable, not a bank loan.
  • Peer - to - peer lending: Involves borrowing from individuals, not a bank.

So, the correct option is the one related to commercial lending.

Answer:

A. Commercial lending