13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan usually has higher interest rates. Interest rates tend to fluctuate more over time. It takes a longer time to obtain this type of financing. A23 Warehousing's CFO is concerned with the possibility of interest rates rising over time. Which type of debt would be riskiest to A23 Warehousing if the firm is most concerned with rising interest rates? O Short-term debt O Long-term debt