Although best used as a last resort, many small businesses find it convenient to use ________ as a short-term source of financing. Although this form of short-term debt comes with high interest rates, it provides a quick line of credit for many firms, including start-up companies who may not be able to secure bank loans.
A) factoring
B) credit cards
C) commercial paper
D) promissory notes

Question

Quizplus · Accepted Answer

Credit cards are often used as a short-term source of financing for small businesses due to their convenience and quick access to credit. While they come with high interest rates, they are often easier to obtain than bank loans for start-up companies with limited credit history or collateral.

Although Best Used as a Last Resort, Many Small Businesses