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Short-term finance is primarily used to meet immediate financial needs and operational expenses, such as purchasing inventory, managing cash flow, or covering unexpected costs. It typically involves borrowing for a period of less than a year, making it suitable for businesses to address temporary funding gaps. This type of finance helps maintain liquidity and supports day-to-day operations, ensuring that a company can continue functioning smoothly without long-term commitments. Ultimately, it enables businesses to seize opportunities and respond quickly to changing market conditions.

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1mo ago

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