a) Unsecured loans. The most common way to finance a temporary cash deficit is to arrange a short-term unsecured bank loan.
b) Secured borrowing. Banks and other finance companies often require security for a loan. Security for short-term loans usually consists of accounts receivable or inventories.
c) Other sources. There are a variety of other sources of short-term funds employed by corporations. The most important of these are the issuance of commercial paper and financing through banker’s acceptances.
