Long-term loan agreements always contain provisions,or covenants,that constrain the firm's future actions.Short-term credit agreements are just as restrictive in order to protect the interest of the lender.

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Short-term credit agreements are generally less restrictive than long-term loan agreements because they involve a shorter time frame and typically less risk for the lender.

Long-Term Loan Agreements Always Contain Provisions,or Covenants,that Constrain the Firm's