Here are some of the key features of short-term money:
* Maturity: Short-term money has a maturity of less than one year. This means that it must be repaid within a relatively short period of time.
* Interest rates: Interest rates on short-term money are typically lower than interest rates on long-term money. This is because short-term money is considered to be less risky than long-term money.
* Sources: Short-term money can be obtained from a variety of sources, including banks, credit unions, and money market funds. Banks are the most common source of short-term money, but credit unions and money market funds can also offer competitive rates.
* Uses: Short-term money is typically used to finance working capital needs, such as inventory purchases, payroll, and accounts receivable. It can also be used to finance short-term projects or to cover unexpected expenses.
Short-term money is a valuable tool for businesses that need to manage their cash flow effectively. By understanding the key features of short-term money, businesses can make informed decisions about how to finance their working capital needs.