With maturity matching, fixed assets and current asset are financed with long-term capital. Temporary assets are financed with short-term financing. This is a moderate policy. However lives of assets are uncertain, so there will be risk involved with both. With an aggressive policy, short-term financing can fund permanent assests. It is riskier, but takes advantage of lower interest on short-term financing methods. Conservative policy is safer, but will yield less profit. They only use short-term credit to finance seasonal needs. No policy is better than the other. It all depends on the risk tolerance for managers.