8. Sources of short-term financing Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Among the sources of short-term funds are banks, suppliers, securities firms, and insurance companies. Their securities (or obligations) can take the form of bank loans, trade credit, commercial paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers should consider the costs of the various sources of financing as part of a business's cash management strategy. The following statement refers to a source of short-term credit. Select the best term to complete the following sentence: The use of as a source of financing is restricted to large firms with exceptionally good credit. Mulder Production Corporation is a very large manufacturing company. Mulder has been paying sales commissions to its salespeople on a quarterly basis. The vice president of sales has proposed that the policy be changed so that the sales staff is paid on a monthly basis. The company's financial managers have been asked to review the proposal. Which type of short-term financing will be affected by this policy change? O Trade credit O Bank loans Commercial paper O Accruals