Short term finance refers to those loans which are procured by a commercial organisation for meeting its short-term financial requirements for a period of one year, or less. It is utilised for daily expenses or current assets such as wages to labour, salaries, purchase of raw material, Godown rent etc.
Following are sources of short term finance:
1. Secured loans.
2. Bank overdraft.
3. Unsecured loans
4. Trade loans.
