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 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 a convenient form of short-term financing for many small businesses, especially start-ups who may not be able to secure bank loans. Although they come with high interest rates, they provide a quick line of credit. Factoring, commercial paper, and promissory notes are also forms of short-term financing but may not be as easily accessible or appropriate for all businesses.

Although Best Used as a Last Resort, Many Small Businesses