37. Short-term financing Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow irements through means of short-term Trade credit financing or long-term financing. Both methods have their advantages and disad Secured loan Firms use a variety of short-term financing sources to support working capital. U wing table to identify the short-term Revolving credit agreement financing source. Accruals Commercial paper Description Liabilities that arise from purchases from suppliers made on credit An obligation backed by collateral, often inventories or accounts receivable 37. Short-term financing Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disad Trade credit Firms use a variety of short-term financing sources to support working capital. U financing source. Revolving credit agreement wing table to identify the short-term Accruals Commercial paper Description irce Secured loan Liabilities that arise from purchases from suppliers made on credit An obligation backed by collateral, often inventories or accounts receivable