Usually, these refer to loans to businesses that are due within the year; in some accounting treatments they may refer to loans of up to five years.
Short term loans, are typically used to cover shortfalls in cash to cover operating expenses, for example waiting for customer credit payments to be received. They may also be used for asset purchases, where income levels will allow for rapid pay off of the loan.
Short-term loans is a term normally used in financial management.
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