Short-term financing is risky because of the possibility of rising short-term rates and the inability of paying off debt within a short period of time.

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Short-term financing typically involves borrowing funds for a period of one year or less. This type of financing can be risky because short-term rates can fluctuate and rise suddenly, which can increase the cost of borrowing. Additionally, the borrower may have difficulty paying off the debt within a short period of time, which can lead to default and other financial problems.

Short-Term Financing Is Risky Because of the Possibility of Rising