of the advantages of short-term debt financing is that firms can obtain short-term credit more quickly than long-term credit.

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Short-term debt financing typically involves borrowing money for a period of less than one year, whereas long-term debt financing may involve borrowing money for several years or even decades. As a result, short-term debt financing typically involves less paperwork and fewer legal requirements than long-term debt financing, which may make it possible for firms to obtain short-term credit more quickly than long-term credit. However, short-term debt financing may also carry higher interest rates and may be more volatile than long-term debt financing, which can create additional risks for firms that rely on this type of financing.

Of the Advantages of Short-Term Debt Financing Is That Firms