Which of the following is the most commonly used source of short-term financing for businesses?

Question

Quizplus · Accepted Answer

Trade credit is the most commonly used source of short-term financing for businesses. Trade credit is the credit given by suppliers to their customers for the purchase of goods and services. It is usually offered on a short-term basis and can help businesses manage their cash flow. Bank loans, factoring, and borrowing from family and friends are also sources of short-term financing, but they are not used as commonly as trade credit.

Which of the Following Is the Most Commonly Used Source