short-term borrowing

Short-term borrowing refers to obtaining funds that are intended to be repaid within a relatively brief period, typically within a year. Businesses or individuals use it to cover immediate expenses or manage cash flow needs, such as paying bills or purchasing inventory. Common forms include loans, credit lines, or credit card advances. This type of borrowing helps maintain financial flexibility but usually involves higher interest rates compared to long-term loans. It is essential to manage short-term borrowing carefully to ensure timely repayment and avoid financial strain.