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However, diagnosing the nature of the shortfall is critical to prescribing a cure. A business shortfall can be related to a complete economic downturn, an industry-wide downturn or changes in an individual company's business operations. A company can use several strategies to stop the shortfall and get back on solid ground. This is often a company's first wave of response to a shortfall. To cut expenses properly, however, business managers must analyze the causes of the shortfall. Often, employees are the first to be cut as they represent a large expense, but without employees, a company cannot serve its customers.
Short-term financing is a method of raising funds involving financial obligations that need to be repaid within a year or less. It is a fast and flexible way for companies to obtain working capital for their daily operations when their cash flow is insufficient.hort-term finance can be a serious risk for the borrower. A short-term loan may be renewed by the lender on much less favorable terms than the original contract. Not only is the business faced with the high cost of the capital, it may not be able to service the accumulated debt.