Why use 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 oenerate enough cash flow to maintain a surplus of cash. Fims prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advaritages and disadvantages. Firms use a variety of short-term finanding sources to support working capital. Use the descriptions in the following table to identify the short-term financing source