Short-term finance deals with the timing of cash flows.
What is Short-term finance?
- Business finance from short-term, typically less than a year, sources is referred to as short-term financing.
- The same assists the organization in generating cash for operating expenses, which are often less in scale. It entails raising capital through online loans, credit lines, and invoice financing.
- It's also known as working capital financing, and it's utilized for things like inventory and receivables.
- In the majority of circumstances, this sort of financing is necessary in the business process because of the business's inconsistent cash flow or cyclical business cycle.
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