One of the advantages of short-term debt financing is that firms can obtain short-term credit more quickly than long-term credit.

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Short-term debt financing usually involves borrowing for a period of one year or less. This type of financing is easier to obtain and the approval process is quicker compared to long-term debt financing. Short-term debt also comes with lower interest rates and is ideal for meeting immediate funding needs, such as purchasing inventory, paying suppliers or covering operational expenses.

One of the Advantages of Short-Term Debt Financing Is That