Short-Term Financing

Short-term financing refers to loans or credit used to meet immediate financial needs, typically for a period of less than one year. Businesses may turn to this type of financing to manage cash flow, purchase inventory, or cover unexpected expenses. Common sources include bank loans, lines of credit, and trade credit from suppliers. The aim is often to bridge the gap between when money is needed and when it will be available, helping businesses maintain operations without long-term debt. The terms and interest rates can vary, but repayment is usually due shortly after the funds are accessed.