Short-term financing is considered an essential tool for institutions to cover the needs of the operating cycle, which arises from the gap between revenue collection deadlines and expense payment deadlines. Short-term financing provides financial flexibility to the institution, especially when facing temporary cash shortages. In this lecture, we will discuss the most important forms of short-term financing and their characteristics, in addition to the justifications and limits of resorting to borrowing.
- Teacher: Nadia Zouggaret