Hello All, I would like to ask a question about debt matching. Finance theory would say match long term debt with long term assets (building, plant etc) and short term debt with short term assets such as working capital. But what if a business is young or just doesn't have the funds to grow and they borrow long term to let's say buy inventory to operate. Providing that the market demand is strong and that inventory would be sold, then is it Ok to borrow long term? If the business do borrow long term then should it pay of the debt faster once cash starts coming in? Thanks, Ravi
