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Short-term finance refers to the funds that businesses and individuals use to cover their immediate financial needs, typically within a one-year period. It is essential for managing day-to-day operations, meeting unexpected expenses, and bridging gaps between income and expenditures.
A credit rating is an evaluation of the creditworthiness of an individual, business, or government entity, reflecting their ability to repay borrowed funds. It is a crucial factor for lenders, investors, and financial institutions in assessing the risk associated with lending money or extending credit.