10. Financing current assets A Aa what are the current asset financing strategies that firms adopt? Firms manage a variety of current assets. Permanent current assets are needed for the firm to maintain its business, and they will be carried even through downtums in business cycles. Temporary current assets fluctuate seasonally or with business cydes. Each firm must devise a financing strategy that best fits its business situation and best manages its risk Use the following table to identify the different current asset financing policies. Description Some portion of fixed assets and the nonseasonal portion of current assets are financed with long-term capital, and al seasonal needs of current assets and the remaining portion of fixed assets are financed with short-term loans Financing Policy Al fixed assets and the nonseasonal portion of current assets are financed with long-term capital, and seasonal needs of current assets are financed with short-term loans. Long-term capital finances all permanent current assets and some temporary financing needs D