What is one of the short-term finance options for a business?

One of the short-term finance options for a business is a bank overdraft. A bank overdraft allows a business to withdraw more money from its account than it actually has, up to a predetermined limit. This flexibility is particularly useful for managing cash flow fluctuations, meeting temporary financial needs, or covering unexpected expenses. The funds can be accessed quickly and are typically repayable on demand or with short notice, making it an effective method for addressing immediate cash flow requirements without the need for lengthy application processes or collateral that might be required for longer-term loans.

In contrast, options like issuing shares to the public and acquiring permanent capital involve raising funds that are typically associated with long-term financing strategies. Selling long-term assets also does not fit within the short-term financing realm, as it usually involves divesting significant company resources, which may not provide the immediate liquidity required for short-term operational needs. Hence, a bank overdraft serves as a practical and efficient solution for short-term financing.