Short-term loans can be sourced from

Short-term loans can be sourced from commercial banks. Commercial banks offer various types of loans, including short-term loans, which are typically repaid within a year or less. These loans are usually used to finance a company's working capital needs, such as inventory purchase, payroll, and other operating expenses. Unlike long-term loans, short-term loans usually have higher interest rates because of their short repayment periods and the higher risk involved for the lender. Companies can obtain short-term loans from commercial banks by meeting certain creditworthiness criteria and providing collateral or other forms of security to the bank.