Long-term financing for your business makes more sense than short-term financing for a number of reasons.
First, long-term financing provides you with comfortable basic financial security. With long-term financing, you are more likely to fulfil obligations on time, i.e. all liabilities are covered by their maturity date at the latest. Adherence to payment deadlines is the golden rule in corporate financing.
Secondly, long-term financing is generally more favorable than short-term financing. With long-term financing, capital providers amortize their commitment over a longer term.
In addition to bank loans, long-term financing also includes mezzanine financing, equity investments and, finally, negotiating a waiver of your creditors' claims. Do not be afraid to question and put all agreements to the test in an acute crisis. Talk to your contractual partners. It is always worth a try. A Spanish proverb says: “You already have a “no” [if you don’t even ask].”