What is the term for funds needed for a year or less?

The term that refers to funds needed for a year or less is short-term financing. This type of financing is typically employed to meet immediate financial needs, such as covering operational costs, purchasing inventory, or addressing temporary cash flow issues. Short-term financing options can include loans, lines of credit, or trade credit, and they are usually expected to be paid back within a short time frame, making them suitable for businesses that require quick access to capital for short-duration needs.

Long-term financing, on the other hand, involves funds that are meant to be repaid over a longer period, typically more than one year, making it inappropriate for covering short-term financial needs. Equity financing refers to raising funds by selling shares of the company, which does not pertain specifically to the time frame of fund usage. Operational financing might be a term that relates to funds used to support ongoing operations, but it does not specifically indicate the duration for which those funds are needed. Thus, short-term financing is the most accurate and relevant term for funds required for a year or less.