Factors affecting the short-term finance:

1. Nature of the business: The nature of the business affects the short-term financial requirements of a concern to a great extent. 

2. Growth and expansion of business: The growth and expansion of business also effects the short-term capital requirements. 

3. Scale of operations: The scale of operations affects the short-term capital requirements of a concert. A concern carrying on activities on a small scale needs less short-term capital.

4. Length of the operating Cycle: The length of the operating cycle, influencer the amount of short-term finance. 

5. Fluctuation in supplies: Fluctuations is supplies affect the short-term or working capital requirements of a firm. Operating efficiency: 

6. Credit policy: The credit policy of a firm affects its short-tern of working capital requirements. 

7. Credit facilities enjoyed from creditors: The credit facilities enjoyed by a firm from its creditors will’also affect the short working capital requirements of a firm.

8. Production policies: The production policies followed by a firm will also affect the working capital requirements. 

9. Rapidity of turnover: There is a high degree of connection between the rapidity of turnover and the amount of working capital requirements. 

10. Seasonal fluctuations in demand: Seasonal fluctuations in demand for products will affect the amount of short-term capital requirements of concern.

11. Taxes: Taxes imposed by the Government affect the working capital of a firm. Higher taxes are a strain on the working capital of the firm. 

12. Dividend policy: The dividend policy of a company affects its working capital requirements. 

13. Profit level: Profit level also affects the short-term or working capital requirements of concern. . 

14. Government regulations: Government regulations and restrictions affect the short-term working capital requirements of a firm. ‘ 

15. Price level changes: Price level changes also affect the short-term or working capital requirements of a firm.