Which of the following is classified as medium-term sources of finance?

Medium-term sources of finance are typically defined as those that need to be repaid within a period of 1 to 5 years. This timeframe allows businesses to manage cash flow effectively while obtaining the funds necessary for various operational needs, such as purchasing equipment or making investments that will enhance productivity or efficiency.

When looking at the classification, medium-term financing strikes a balance between short-term sources, which are usually for less than one year, and long-term sources that extend beyond five years. This classification helps businesses strategize their financing according to how quickly they anticipate needing to repay their obligations.

In this context, the choice that specifies a repayment period of 1 to 5 years aligns perfectly with the standards for medium-term financing, making it the correct answer. Other options, while they may represent forms of finance, do not meet the criteria specifically mentioned for medium-term classification.