When old short-term debt is replaced by new short-term debt as the old debt comes due, the process is known as:

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Rolling the debt refers to the practice of refinancing short-term debt by replacing old debt with new debt as it comes due. This is often used by businesses to manage their cash flow and maintain liquidity. Compensating balance refers to a requirement by lenders for borrowers to maintain a certain minimum balance in an account as a condition of the loan. Fluctuating financing is a financing strategy that adjusts the amount of borrowed funds based on changes in cash flow needs. Re-terming is not a commonly used term in financial management.

When Old Short-Term Debt Is Replaced by New Short-Term Debt