2. Different risks: the risk of short-term loans is relatively low;
3. Different interest rates: Compared with long-term loans, the biggest advantage of short-term loans is low interest rates;
4. Different accounting amounts: short-term loans only calculate the principal, while long-term loans not only calculate the principal, but also calculate the interest.
The above is the difference between long-term loans and short-term loans.
Brief introduction of long-term loans and short-term loans
Long-term loans generally refer to all kinds of loans that enterprises will borrow from banks or other financial institutions for more than one year when they need a lot of funds. Enterprises need a lot of money to invest in a project, and their own funds are often not enough to support, so they need to prepare funds through loans.
Short-term loans are all kinds of loans that enterprises raise funds from banks or other financial institutions according to the needs of production and operation, and the repayment period is within one year, including working capital loans and temporary loans. This article is mainly about the knowledge points about the difference between long-term borrowing and short-term borrowing, and the content is for reference only.