What is short-term finance? Explain the important sources of short-term finance
Short-term finance refers to the financial resources and funding options that are available to a business or individual for a relatively short period, usually up to one year. It is typically used to meet immediate or temporary cash flow needs, such as managing day-to-day operations, funding working capital requirements, or addressing short-term financial obligations. Short-term finance helps bridge the gap between cash inflows and outflows, ensuring smooth business operations.
Here are some important sources of short-term finance:
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Trade Credit: Trade credit is an important source of short-term finance, especially for businesses. It refers to the ____ __________ ____ ______ ______ ______ _________ ______ ________ ______ ____.
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