02-07-2024, 06:47 AM
Short-term financing typically refers to funds borrowed or obtained for a brief period, usually less than a year, to address immediate needs like inventory purchases or working capital. It includes options like trade credit, lines of credit, and short-term loans, with quicker repayment terms and often higher interest rates.
Long-term financing, on the other hand, involves securing funds for an extended period, typically over a year, to fund substantial investments like equipment purchases or expansion projects. Examples include equity financing, bonds, and traditional bank loans, with longer repayment periods and lower interest rates.
Long-term financing, on the other hand, involves securing funds for an extended period, typically over a year, to fund substantial investments like equipment purchases or expansion projects. Examples include equity financing, bonds, and traditional bank loans, with longer repayment periods and lower interest rates.