Factors that affect the selection of a short-term financing strategy include:

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All of the factors mentioned (cost, flexibility, and qualitative factors) can have an impact on the selection of a short-term financing strategy. Cost refers to the interest rate or fees associated with the financing option, and a business will want to choose the option with the lowest cost. Flexibility refers to how easily the financing can be obtained and repaid, and a business may need a more flexible option to accommodate unexpected changes in cash flow. Qualitative factors refer to non-financial considerations, such as the reputation of the lender or the impact on vendor relationships, and these should also be taken into account when selecting a financing option. Therefore, all three factors are important and should be considered together when choosing a short-term financing strategy.

Factors That Affect the Selection of a Short-Term Financing Strategy