short-term financing

Also known as: floating debt, short-term capital, short-term debt, short-term security(Show More)

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July 13, 2026

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Short-term financing refers to borrowing money for a period of weeks or months. The primary sources include trade credit, commercial bank loans, commercial paper, and secured loans. Secured loans are backed by collateral, typically accounts receivable or inventories, and are used when a company's credit rating isn't strong enough for unsecured borrowing. Accounts receivable can be pledged or sold outright through factoring. Inventory can also serve as collateral, sometimes managed through field warehousing arrangements. Intermediate-term financing, in contrast, is repaid over 1 to 15 years and includes term loans, conditional sales contracts, and lease financing.123

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business finance
Short-term financing
The main sources of short-term financing are (1) trade credit, (2) commercial bank loans, (3) commercial paper, a specific type of promissory note, and (4) secured loans.
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The main sources of short-term financing are (1) trade credit, (2) commercial bank loans, (3) commercial paper, a specific type of promissory note, and (4) secured loans.
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Export-Import Bank of the United States
…guarantees (principally to commercial banks), short-term and medium-term loans, credit insurance, financing for the purchase of aircraft, and financing for environmental, nuclear, and other special projects. Most bank assistance has consisted of direct financing to buyers abroad of American goods and services. This assistance has taken the form of long-term…
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…guarantees (principally to commercial banks), short-term and medium-term loans, credit insurance, financing for the purchase of aircraft, and financing for environmental, nuclear, and other special projects. Most bank assistance has consisted of direct financing to buyers abroad of American goods and services. This assistance has taken the form of long-term…
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government budget
Maturity period
…is often called short-term or floating debt and may take several forms: notes, with maturities from one to five years; treasury bills, with maturities from one month to a year and often sold at auction; and certificates of indebtedness, with similar maturity periods but available at a fixed interest rate.
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…is often called short-term or floating debt and may take several forms: notes, with maturities from one to five years; treasury bills, with maturities from one month to a year and often sold at auction; and certificates of indebtedness, with similar maturity periods but available at a fixed interest rate.
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open-market operation
…are customarily carried out with short-term government securities (in the United States, frequently Treasury bills). Observers disagree on the advisability of such a policy. Supporters believe that dealing in both short-term and long-term securities would distort the interest-rate structure and therefore the allocation of credit. Opponents believe that this would…
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…are customarily carried out with short-term government securities (in the United States, frequently Treasury bills). Observers disagree on the advisability of such a policy. Supporters believe that dealing in both short-term and long-term securities would distort the interest-rate structure and therefore the allocation of credit. Opponents believe that this would…
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