Short-term financing refers to borrowed funds that must be repaid in a year or less.

Name: Short-term financing refers to borrowed funds that must be repaid in a year or less.
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Short-term financing is defined as borrowed funds that are expected to be repaid within a year or less. This type of financing is often used for working capital needs, such as inventory purchases or payroll expenses. Examples of short-term financing include lines of credit, trade credit, and commercial paper.

Short-Term Financing Refers to Borrowed Funds That Must Be Repaid