To ensure that a borrower is not using short-term bank credit to finance a part of its permanent needs for funds,banks often require borrowers to clean up their short-term loans for a 30-45 day period during the year.

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This is true. Banks require borrowers to clean up their short-term loans for a period of 30-45 days to ensure that they are not relying on short-term credit to finance their long-term needs. This is known as a "seasonal cleanup" and helps banks manage their risk and ensure the sustainability of the borrower's operations.

To Ensure That a Borrower Is Not Using Short-Term Bank